Global reserve needs
In the two previous chapters various aspects of the assessment of the need for reserves which also have relevance for the global reserve situation were discussed. As a consequence, the present chapter deals only summarily with certain questions. The resulting brevity of some sections should not be interpreted as meaning that the problem of global reserve needs is of lesser importance that that of the need for reserves of individual countries; in fact, in some instances, such as decisions on the creation of SDRs, the opposite would appear to be the case. However, there seems little merit in covering the same ground twice.
KeywordsExchange Rate Interest Rate Monetary Policy Stable Exchange Rate Global Reserve
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- 1.Cf. p. 153 above.Google Scholar
- 2.Cf. p. 134 above.Google Scholar
- 2.Cf. p. 138 above.Google Scholar
- 1.The distinction between the need and the demand for reserves was set out on pp. 152–154 above.Google Scholar
- 2.Cf. pp. 102, 103 above.Google Scholar
- 3.Cf. Jürg Niehans, “The Need for Reserves of a Single Country”, in International Reserves: Needs and Availability (1970); Herbert G. Grubel, “The Demand for International Reserves: A Critical Review of the Literature”, Journal of Economic Literature, December 1971; John Williamson, “Surveys in Applied Economics: International Liquidity”, Economic Journal, September 1973.Google Scholar
- 1.Cf. section iv of chapter 4 above.Google Scholar
- 2.Cf. Niehans, p. 78.Google Scholar
- 3.Cf. Grubel, p. 1158.Google Scholar
- 4.Cf. Niehans, p. 82.Google Scholar
- 1.This conclusion is shared by Williamson (Economic Journal, September 1973, p. 695) who notes that these studies seem to provide adequate evidence to recommend the sceptics to reconsider their position.Google Scholar