International reserve-holding in the developing world: self insurance in a crisis-prone era?

• Main Author: Mendoza, Ronald U
• Format: text
• Published: Archīum Ateneo 2004
• Subjects: International reserves; Special drawing rights; Quantity theory; Liquidity at risk; Self-insurance; Finance; Public Affairs, Public Policy and Public Administration
• Online Access: https://archium.ateneo.edu/asog-pubs/114; https://www.sciencedirect.com/science/article/abs/pii/S1566014103000815
• Institution: Ateneo De Manila University

Developing countries’ reserves have increased dramatically in recent years—growing by over 60% since the Asian financial crisis. This paper explores the self-insurance motivation behind this. As a first step, it revisits the literature on international reserve demand. This paper then examines the re...