Abstract
One striking feature following the Asian economic crisis of 1997 is that many emerging economies have built up a large stock of international reserves (Aizenman & Marion, 2003; Aizenman & Lee, 2007; IMF, 2010). This reflects an important fact that sound macroeconomic management with low inflation may not insulate an economy from the likely adverse impact of volatile capital flows in the current international monetary system. The international monetary system has been observing global imbalances and unpredictable, volatile cross-border capital flows (IMF, 2010). A sharp accumulation of international reserves in many emerging countries in response to this has generated widespread concern among both policy makers and academic circles (Obstfeld, Shambaugh, & Taylor, 2010; IMF, 2010; Aizenman & Lee, 2007).
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© 2015 Prakash Kumar Shrestha and Willi Semmler
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Shrestha, P.K., Semmler, W. (2015). Monetary Policy and International Reserves in Emerging Economies: Theory and Empirics. In: Finch, N. (eds) Emerging Markets and Sovereign Risk. Palgrave Macmillan, London. https://doi.org/10.1057/9781137450661_12
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DOI: https://doi.org/10.1057/9781137450661_12
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