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Capital Flows, Financial Integration, and International Reserve Holdings :, The Recent Experience of Emerging Markets and Advanced Economies, Sunil Sharma, Woon Choi, Maria Strömqvist

This paper examines the interaction between capital flows and international reserve holdings in the context of increasing financial integration. For emerging markets the sensitivity of reserves to net capital flows was negative in the 1980s, but became positive after the Asian crisis when these countries used net capital flows to build up reserves. For advanced countries, net capital flows had a negative effect on reserves, especially in recent years. Using measures of financial globalization, we also provide evidence that the sensitivity of reserves to net capital flows increased with globalization for emerging markets while it decreased for advanced countries
Table Of Contents
Contents; I. Introduction; II. Determinants of International Reserves; A. Buffer Stocks and Precautionary Motive; B. Other Considerations; C. Capital Flows and Financial Integration; III. Data and Descriptive Statistics; Figures; 1. Foreign Reserves, Net Capital Flows, and Current Accounts; 2. Reserves-to-GDP Ratio: Changes in the Distribution; IV. Empirical Results; A. Baseline Regressions; 3. Variability in Net Capital Flows and Current Accounts; Tables; 1. Baseline Regressions; B. Estimating the Effects of Financial Integration; 4. Measures of Financial Integration
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (38 p.)
Specific Material Designation
Form Of Item

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