UID:
almafu_9958104839302883
Umfang:
1 online resource (38 p.)
ISBN:
9781475529128
,
1475529120
,
9781475556698
,
1475556691
,
9781299264427
,
1299264425
,
9781475576115
,
1475576110
Serie:
IMF Working Papers
Inhalt:
Views on the effectiveness of sterilized reserve intervention vary. Sterilized intervention is generally seen as ineffective in advanced countries while persistent intervention by some emerging markets is often cited as contributing to undervalued exchange rates and current account surpluses. This paper argues that capital controls reconcile these views. We find strong and highly robust evidence that sterilized intervention is fully offset by outflows of private money in countries without controls, while controls partially block this offset. For a country with extensive capital controls, every dollar in additional reserves increases the current account by some 50 cents. This is mainly offset by an opposite adjustment in the current account of the United States—the dominant reserve currency issuer with the deepest and most liquid bond markets—with a smaller diversion to other emerging markets.
Anmerkung:
Description based upon print version of record.
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Cover; Contents; I. Introduction; II. Specification; III. Data and Variable definitions; IV. Estimation results; A. The average effect of intervention on current accounts in has fallen side by side with the trend towards more open capital accounts; B. In open economies reserve accumulation is a powerless policy tool while closed economies improve their current accounts by 50 cents for every dollar spent; C. The exorbitant privilege awarded to the United States is the main offset from global reserve accumulation but there also seems to be diversion to open emerging markets
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V. Conclusions and Policy ImplicationsFigures; 1. Capital Account Restrictiveness Measures Over Time; 2. Global Current Account Imbalances (Percent of Global GDP) Due to Reserve; Tables; 1a. Capital Account Restrictiveness Measures: Summary Statistics; 1b. Capital Account Restrictiveness Measures: Cross-Correlations; 2. Capital Account Restrictiveness Measures for G20 (latest); 3. Gagnon (2012) Specification; 4. Adding Interaction Terms: Un-Weighted; 5. Adding Interaction Terms: Weighted; 6. Adding Interaction Terms: Un-Weighted and Using Instrumental Variables
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7. Adding Interaction Terms: Weighted and Using Instrumental Variables8. Adding Interaction Terms: Using Two-Year Averages; 9. Adding Interaction Terms: Extended Sample (1980-2010); 10. Adding Interaction Terms and Diversion Terms: Using Schindler; Appendix; Appendix Tables; 1. Adding Interaction Terms: Using Three-Year Averages; 2. Adding Interaction Terms: Using Four-Year Averages; 3. Adding Interaction Terms: Using Five-Year Averages; 4. Adding Interaction Terms and Diversion Terms: Excluding The Level Term; 5. Adding Interaction Terms and Diversion Terms: Using Chinn-Ito Measure
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6. Adding Interaction Terms and Diversion Terms: Using Quinn MeasureReferences
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English
Weitere Ausg.:
ISBN 9781475535761
Weitere Ausg.:
ISBN 1475535767
Sprache:
Englisch
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