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Regime dependence, Mrs. Machlup's wardrobe and the accumulation of international reserves in Asia

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  • Pontines, Victor
  • Yongqiang, Li

Abstract

An old yet rarely explored motive of hoarding international reserves advanced by Machlup (1966) is examined. Reserve accumulation behavior in Asia is driven by a psychological desire to keep up with neighboring countries, i.e., 'keeping up with the Joneses effect'.

Suggested Citation

  • Pontines, Victor & Yongqiang, Li, 2011. "Regime dependence, Mrs. Machlup's wardrobe and the accumulation of international reserves in Asia," Economics Letters, Elsevier, vol. 110(3), pages 231-234, March.
    • Handle: RePEc:eee:ecolet:v:110:y:2011:i:3:p:231-234
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    References listed on IDEAS

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    1. Michael P. Dooley & David Folkerts-Landau & Peter M. Garber, 2005. "An essay on the revived Bretton Woods system," Proceedings, Federal Reserve Bank of San Francisco, issue Feb.
    2. Graham Bird & Alex Mandilaras, 2010. "Revisiting Mrs. Machlup's wardrobe: the accumulation of international reserves, 1992-2001," Applied Economics Letters, Taylor & Francis Journals, vol. 17(5), pages 467-471.
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    4. Joshua Aizenman, 2008. "Large Hoarding Of International Reserves And The Emerging Global Economic Architecture," Manchester School, University of Manchester, vol. 76(5), pages 487-503, September.
    5. Yin‐Wong Cheung & Xingwang Qian, 2009. "Hoarding of International Reserves: Mrs Machlup's Wardrobe and the Joneses," Review of International Economics, Wiley Blackwell, vol. 17(4), pages 824-843, September.
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    Cited by:

    1. Andrew J. Filardo & Pierre L. Siklos, 2016. "Prolonged Reserves Accumulation, Credit Booms, Asset Prices and Monetary Policy in Asia," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(2), pages 364-381, February.
    2. M, Ramachandran & Maheswari, D., 2022. "Asymmetry in forex market intervention: Does it reflect fear of reserve inadequacy?," The Journal of Economic Asymmetries, Elsevier, vol. 25(C).
    3. Dariusz Urban, 2016. "Gromadzenie aktywów rezerwowych a motyw naśladownictwa - doświadczenia wybranych krajów z państwowymi funduszami majątkowymi," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 127-143.
    4. Samba Michel Cyrille, 2015. "International Reserves Holdings in the CEMAC Area: Adequacy and Motives," African Development Review, African Development Bank, vol. 27(4), pages 415-427, December.
    5. Heng, Dyna & Corbett, Jenny, 2011. "What Drives Some Countries to Hoard Foreign Reserves?," MPRA Paper 48552, University Library of Munich, Germany, revised Oct 2011.
    6. Heng, Dyna, 2011. "Does financial development reduce the motivation to hoard foreign reserves?," MPRA Paper 48555, University Library of Munich, Germany, revised 2012.

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