A macroprudential theory of foreign reserve accumulation / by Fernando Arce, Julien Bengui and Javier Bianchi. : FB3-5/2019-43E-PDF
"This paper proposes a theory of foreign reserves as macroprudential policy. We study an open-economy model of financial crises in which pecuniary externalities lead to overborrowing, and show that by accumulating international reserves, the government can achieve the constrained-efficient allocation. The optimal reserve accumulation policy leans against the wind and significantly reduces the exposure to financial crises. The theory is consistent with the joint dynamics of private and official capital flows, both over time and in the cross-section, and can quantitatively account for the recent upward trend in international reserves"--Abstract, page ii.
Lien permanent pour cette publication :
publications.gc.ca/pub?id=9.880178&sl=1
Ministère/Organisme | Bank of Canada. |
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Titre | A macroprudential theory of foreign reserve accumulation / by Fernando Arce, Julien Bengui and Javier Bianchi. |
Titre de la série | Bank of Canada staff working paper, 1701-9397 ; 2019-43 |
Type de publication | Série - Voir l'enregistrement principal |
Langue | [Anglais] |
Format | Électronique |
Document électronique | |
Note(s) | "October 2019." Includes bibliographical references (pages 25-27). Includes abstracts in English and French. |
Information sur la publication | Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2019. ©2019 |
Auteur / Contributeur | Arce, Fernando, author. Bengui, Julien, author. Bianchi, Javier, author. |
Description | 1 online resource (ii, 29 pages) : colour illustrations. |
Numéro de catalogue |
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Descripteurs | Public finance Financial services Risk management Models |