International Reserves and Pooling.pptVIP

International Reserves and Pooling ;Plan;International Reserves of Central Banks;Reserves accumulation: a widespread phenomena;Reserves accumulation : country groups;Global Dynamics : Stylized Facts;Demand for Reserves Theory;b) Hamada and Ueda (1977); Aizenman and Marion (2004): Reserves are precautionary saving when countries are restricted to international liquidity. Aizenman and Lee (2005): Banks intermediate between external funds and long term domestic investment projects. Investment are decided before a sudden stop occurs. Because there is not a credible international lender of last resort, build-up reserves is a self-insurance policy which avoid the cost of a premature liquidation of assets. ;Modern approach (3): Reserves and Financial Crisis;Reserves/GDP;Competitiveness and Exchange Rate Regime;Reserves and Exchange Rate Regime ;Systematic Accumulation and Sterilization;Optimal Reserves Level: Adequacy Indicators ; ;Reserves and Short-Run External Debt (2005);Optimal Reserve Level: Econometric Analysis;Reserves Hoarding as Prudent Monetary Policy ;Source of Reserve Accumulation in Argentina;Source: BCRA.;Argentina: Scaled Reserves;Argentina: Reserves and External Debt ;Results: less vulnerability to foreign shocks;Risks and Hedge;Reserve Pooling ;Regional Pools: Asian Experience (ASEAN + 3*);ABF2 - Components;ABF2 – Market Shares;Regional Pools: Latin America*;Why do so many countries follow an aggressive strategy of reserve accumulation? Asymmetric financial and trade integration: high volatility for emerging countries Global imbalances: non negligible probability of sudden changes in the international economy The lack of a reliable global financial architecture with a lender of last resort (after financial crisis of the 90′s) Competitive imitation among emerging countries, specially during intermediate development stages (U shape relationship) Because of the financial markets imperfections, liquidity is a reasonable way of self-in