Central Bank Vulnerability and the Credibility of Commitments : A Value-at-Risk Approach to Currency Crises /

A loss of solvency increases central bank vulnerability, reducing the credibility of commitments to defend a nominal regime, including an exchange rate peg. This paper develops a methodology to assess central bank solvency and exposure to risk. The measure, based on Value-at-Risk, is frequently used...

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Dades bibliogràfiques
Autor principal: Schumacher, Liliana
Altres autors: Blejer, Mario
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 1998.
Col·lecció:IMF Working Papers; Working Paper ; No. 1998/065
Accés en línia:Full text available on IMF
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245 1 0 |a Central Bank Vulnerability and the Credibility of Commitments :   |b A Value-at-Risk Approach to Currency Crises /  |c Liliana Schumacher, Mario Blejer. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1998. 
300 |a 1 online resource (29 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
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520 3 |a A loss of solvency increases central bank vulnerability, reducing the credibility of commitments to defend a nominal regime, including an exchange rate peg. This paper develops a methodology to assess central bank solvency and exposure to risk. The measure, based on Value-at-Risk, is frequently used to evaluate commercial risk. The paper emphasizes that the ability to sustain nominal commitments cannot be gauged by focusing only on selected accounts (such as reserves), but requires a comprehensive solvency and vulnerability analysis of the monetary authorities' complete portfolio (including off-balance-sheet operations). The suggested measure has powerful reporting value and its disclosure could improve monitoring of sovereign solvency risk. 
538 |a Mode of access: Internet 
700 1 |a Blejer, Mario. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1998/065 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1998/065/001.1998.issue-065-en.xml  |z IMF e-Library