Optimal Precautionary Reserves for Low-Income Countries : A Cost-Benefit Analysis /

This paper develops a cost-benefit approach that helps to quantify the optimal level of international reserves in low-income countries, focusing on the role of reserves in preventing and mitigating absorption drops triggered by large external shocks. The approach is applied to a sample of 49 LICs ov...

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Bibliographic Details
Main Author: Dabla-Norris, Era
Other Authors: Kim, Jun, Shirono, Kazuko
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2011.
Series:IMF Working Papers; Working Paper ; No. 2011/249
Online Access:Full text available on IMF