Accumulating Foreign Reserves Under Floating Exchange Rates /

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Bibliographic Details
Author / Creator:	Gonçalves, Fernando M., author.
Imprint:	Washington, D.C. : International Monetary Fund, 2008.
Description:	1 online resource (41 pages)
Language:	English
Series:	IMF working paper ; WP/08/96 IMF working paper ; WP/08/96.
Subject:	Foreign exchange rates -- Econometric models. Bank reserves -- Econometric models. Monetary policy -- Econometric models. Bank reserves -- Econometric models. Foreign exchange rates -- Econometric models. Monetary policy -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12501087

Hidden Bibliographic Details
Other uniform titles:	IMF eLibrary.
Other authors / contributors:	Goncalves, Fernando M. International Monetary Fund.
ISBN:	1451914113 9781451914115 1282840517 9781282840515 9781451914115
Notes:	Available in PDF, ePUB, and Mobi formats on the Internet.
Summary:	Official accumulation of foreign reserves may be perceived as interventions to influence the exchange rate, undermining the credibility of floating exchange rates and inflation targets. This paper develops a theoretical framework to study the interaction between reserve accumulation and monetary policy. The model uncovers a trade-off between the speed of reserve accumulation and anti-inflationary credibility. Under reasonable assumptions, delegation of intervention and monetary policy decisions to separate government agencies allows faster reserve accumulation, while centralization of these decisions results in a more stable economy. The analysis underscores the importance of rather overlooked institutional features of policymaking in open economies.
Other form:	Print version: Gonçalves, Fernando M. Accumulating Foreign Reserves Under Floating Exchange Rates. Washington : International Monetary Fund, ©2008

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