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International Reserves in Low Income Countries: Have they Served As Buffers?

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  • International Monetary Fund

Abstract

This paper provides a historical perspective on the role of international reserves in low-income countries as a cushion against large external shocks over the last three decades - including the current global crisis. The results suggest that international reserves have played a role in buffering external shocks, with the resulting macroeconomic costs varying with the nature of the shock, the economy's structural characteristics, and the level of reserves.

Suggested Citation

  • International Monetary Fund, 2012. "International Reserves in Low Income Countries: Have they Served As Buffers?," IMF Working Papers 2012/007, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2012/007
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    References listed on IDEAS

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    1. Ms. Era Dabla-Norris & Mr. Jun I Kim & Ms. Kazuko Shirono, 2011. "Optimal Precautionary Reserves for Low-Income Countries: A Cost-Benefit Analysis," IMF Working Papers 2011/249, International Monetary Fund.
    2. Mr. Paolo Mauro & Mr. Torbjorn I. Becker & Mr. Jonathan David Ostry & Mr. Romain Ranciere & Mr. Olivier D Jeanne, 2007. "Country Insurance: The Role of Domestic Policies," IMF Occasional Papers 2007/004, International Monetary Fund.
    3. Drummond, Paulo & Dhasmana, Anubha, 2008. "Foreign Reserve Adequacy in Sub-Saharan Africa," MPRA Paper 9729, University Library of Munich, Germany.
    4. Mr. Chris Papageorgiou & Hans Weisfeld & Ms. Catherine A Pattillo & Mr. Martin Schindler & Mr. Nikola Spatafora & Mr. Andrew Berg, 2011. "Global Shocks and their Impacton Low-Income Countries: Lessons From theglobal Financial Crisis," IMF Working Papers 2011/027, International Monetary Fund.
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