International application of the quantity theory of money in which money supply is replaced
by international reserves and income by imports, has come under the heading of the …

The rapid growth of international reserves, a development concentrated in the emerging
markets, remains a puzzle. In this paper, we suggest that a model based on financial stability …

We present a model of the optimal level of international reserves for a small open economy
seeking insurance against sudden stops in capital flows. We derive a formula for the optimal …

We derive a precautionary demand for international reserves in the presence of sovereign
risk and show that political‐economy considerations modify the optimal level of reserve …

WITH INTERNATIONAL reserves four times as large, in terms of their GDP, as in the early
1990s, emerging market countries seem more protected than ever against shocks to their …

The model focuses on the demand for optimal precautionary reserves for a borrowing
country. We combine the standard approach to optimal reserves with a typical country-risk …

Last September, as calls grew louder for European Central Bank (ECB) intervention to
reverse the euro's fall, the lead of an Economist article asked," If central banks are so …

This study examines the role of sovereign wealth funds (SWFs) in the global economy and
financial system. Sovereign wealth funds are not a new phenomenon in international …

Most models currently used to determine optimal foreign reserve holdings take the level of
international debt as given. However, given the sovereign's willingness-to-pay incentive …

We evaluate the impact of the global financial crisis (GFC) and recent structural changes in
the patterns of hoarding international reserves (IR). We confirm that the determinants of IR …