Precautionary Reserves: An Application to Bolivia
Using precautionary savings models we compute levels of optimal reserves for Bolivia. Because of Bolivia''s reliance on commodity exports and little integration with capital markets, we focus on current account shocks as the key balance of payments risk. These models generate an optimal le...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2010
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Schriftenreihe: | IMF Working Papers
Working Paper No. 10/54 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | Using precautionary savings models we compute levels of optimal reserves for Bolivia. Because of Bolivia''s reliance on commodity exports and little integration with capital markets, we focus on current account shocks as the key balance of payments risk. These models generate an optimal level of net foreign assets ranging from 29 to 37 percent of GDP. For comparison purposes, we contrasted these results with standard rule of thumb measures of reserve adequacy, which in the case of Bolivia resulted in substantially lower levels of adequate reserves. These differing results emphasize the need to appropriately account for country-specific risks in order to derive adequate measures of reserve buffers |
Beschreibung: | 1 Online-Ressource (25 p) |
ISBN: | 1451963505 9781451963502 |
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spelling | Valencia, Fabian Verfasser aut Precautionary Reserves An Application to Bolivia Valencia, Fabian Washington, D.C International Monetary Fund 2010 1 Online-Ressource (25 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 10/54 Using precautionary savings models we compute levels of optimal reserves for Bolivia. Because of Bolivia''s reliance on commodity exports and little integration with capital markets, we focus on current account shocks as the key balance of payments risk. These models generate an optimal level of net foreign assets ranging from 29 to 37 percent of GDP. For comparison purposes, we contrasted these results with standard rule of thumb measures of reserve adequacy, which in the case of Bolivia resulted in substantially lower levels of adequate reserves. These differing results emphasize the need to appropriately account for country-specific risks in order to derive adequate measures of reserve buffers Online-Ausg http://elibrary.imf.org/view/IMF001/10789-9781451963502/10789-9781451963502/10789-9781451963502.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Valencia, Fabian Precautionary Reserves An Application to Bolivia |
title | Precautionary Reserves An Application to Bolivia |
title_auth | Precautionary Reserves An Application to Bolivia |
title_exact_search | Precautionary Reserves An Application to Bolivia |
title_exact_search_txtP | Precautionary Reserves An Application to Bolivia |
title_full | Precautionary Reserves An Application to Bolivia Valencia, Fabian |
title_fullStr | Precautionary Reserves An Application to Bolivia Valencia, Fabian |
title_full_unstemmed | Precautionary Reserves An Application to Bolivia Valencia, Fabian |
title_short | Precautionary Reserves |
title_sort | precautionary reserves an application to bolivia |
title_sub | An Application to Bolivia |
url | http://elibrary.imf.org/view/IMF001/10789-9781451963502/10789-9781451963502/10789-9781451963502.xml |
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