A Fiscal Price Tag for International Reserves /

This paper examines the (quasi-)fiscal impact of the (opportunity) cost of international reserves. It proposes a conceptual framework, with particular emphasis on two hitherto somewhat neglected aspects: a more appropriate measure of gross opportunity cost, and potential savings from lower external...

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Detalhes bibliográficos
Autor principal: Hauner, David
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2005.
Colecção:IMF Working Papers; Working Paper ; No. 2005/081
Acesso em linha:Full text available on IMF
Descrição
Resumo:This paper examines the (quasi-)fiscal impact of the (opportunity) cost of international reserves. It proposes a conceptual framework, with particular emphasis on two hitherto somewhat neglected aspects: a more appropriate measure of gross opportunity cost, and potential savings from lower external debt spreads that countries "buy" by holding reserves. The framework is then applied to 100 countries over 1990-2004. The results suggest that a turning point has been reached in recent years: while most countries made money on their reserves during 1990-2001, most have been losing money during 2002-04.
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Descrição Física:1 online resource (29 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students