The self-insurance role of international reserves and the 2008-2010 crisis

Detalhes bibliográficos
Autor(a) principal: Silva Júnior, Antônio Francisco de Almeida da
Data de Publicação: 2016
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Institucional da UFBA
Texto Completo: http://repositorio.ufba.br/ri/handle/ri/28354
Resumo: There is no standard rule for the definition of an optimal amount of international reserves and several assumptions underlie the rationale behind holding reserves. There are various theoretical approaches, but no standard for the evaluation of the performance of optimal level models, and their parameters are difficult to estimate. The literature suggests that the benefits of holding reserves are high, but the accumulation of reserves is a costly strategy. In fact, in a world of high liquidity and free capital flow, establishing an optimal level for international reserves is still a puzzle. The strategy of accumulating international reserves is evaluated here using data from the 2008-2010 crisis. It is shown that countries with higher international reserve holdings had less adjustment costs during the global financial crisis. The cost-benefit relationship of holding reserves is also discussed based on a sample of 71 countries.
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spelling Silva Júnior, Antônio Francisco de Almeida da2019-01-09T21:33:23Z2019-01-09T21:33:23Z20162371-2112http://repositorio.ufba.br/ri/handle/ri/28354v. 1, n. 3, p. 1-24There is no standard rule for the definition of an optimal amount of international reserves and several assumptions underlie the rationale behind holding reserves. There are various theoretical approaches, but no standard for the evaluation of the performance of optimal level models, and their parameters are difficult to estimate. The literature suggests that the benefits of holding reserves are high, but the accumulation of reserves is a costly strategy. In fact, in a world of high liquidity and free capital flow, establishing an optimal level for international reserves is still a puzzle. The strategy of accumulating international reserves is evaluated here using data from the 2008-2010 crisis. It is shown that countries with higher international reserve holdings had less adjustment costs during the global financial crisis. The cost-benefit relationship of holding reserves is also discussed based on a sample of 71 countries.Submitted by Núcleo de Pós-Graduação Administração (npgadm@ufba.br) on 2018-11-13T20:04:09Z No. of bitstreams: 1 The Self-Insurance Role of International Reserves and the 2008-2010.pdf: 806403 bytes, checksum: 4444c39b18b6d19c196b1eb6758ffd8d (MD5)Approved for entry into archive by Maria Angela Dortas (dortas@ufba.br) on 2019-01-09T21:33:23Z (GMT) No. of bitstreams: 1 The Self-Insurance Role of International Reserves and the 2008-2010.pdf: 806403 bytes, checksum: 4444c39b18b6d19c196b1eb6758ffd8d (MD5)Made available in DSpace on 2019-01-09T21:33:23Z (GMT). No. of bitstreams: 1 The Self-Insurance Role of International Reserves and the 2008-2010.pdf: 806403 bytes, checksum: 4444c39b18b6d19c196b1eb6758ffd8d (MD5) Previous issue date: 2016Canadáhttps://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/17/pdfreponame:Repositório Institucional da UFBAinstname:Universidade Federal da Bahia (UFBA)instacron:UFBAInternational reservesCrisisCentral BanksInsuranceRisk managementThe self-insurance role of international reserves and the 2008-2010 crisisJournal of Insurance and Financial Managementinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleBrasilinfo:eu-repo/semantics/openAccessengORIGINALThe Self-Insurance Role of International Reserves and the 2008-2010.pdfThe Self-Insurance Role of International Reserves and the 2008-2010.pdfapplication/pdf806403https://repositorio.ufba.br/bitstream/ri/28354/1/The%20Self-Insurance%20Role%20of%20International%20Reserves%20and%20the%202008-2010.pdf4444c39b18b6d19c196b1eb6758ffd8dMD51LICENSElicense.txtlicense.txttext/plain1345https://repositorio.ufba.br/bitstream/ri/28354/2/license.txt0d4b811ef71182510d2015daa7c8a900MD52TEXTThe Self-Insurance Role of International Reserves and the 2008-2010.pdf.txtThe Self-Insurance Role of International Reserves and the 2008-2010.pdf.txtExtracted texttext/plain63038https://repositorio.ufba.br/bitstream/ri/28354/3/The%20Self-Insurance%20Role%20of%20International%20Reserves%20and%20the%202008-2010.pdf.txt8f8a327decdb4e4962567edf1e0d13e6MD53ri/283542022-03-09 20:42:06.385oai:repositorio.ufba.br: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Repositório InstitucionalPUBhttp://192.188.11.11:8080/oai/requestopendoar:19322022-03-09T23:42:06Repositório Institucional da UFBA - Universidade Federal da Bahia (UFBA)false
dc.title.pt_BR.fl_str_mv The self-insurance role of international reserves and the 2008-2010 crisis
dc.title.alternative.pt_BR.fl_str_mv Journal of Insurance and Financial Management
title The self-insurance role of international reserves and the 2008-2010 crisis
spellingShingle The self-insurance role of international reserves and the 2008-2010 crisis
Silva Júnior, Antônio Francisco de Almeida da
International reserves
Crisis
Central Banks
Insurance
Risk management
title_short The self-insurance role of international reserves and the 2008-2010 crisis
title_full The self-insurance role of international reserves and the 2008-2010 crisis
title_fullStr The self-insurance role of international reserves and the 2008-2010 crisis
title_full_unstemmed The self-insurance role of international reserves and the 2008-2010 crisis
title_sort The self-insurance role of international reserves and the 2008-2010 crisis
author Silva Júnior, Antônio Francisco de Almeida da
author_facet Silva Júnior, Antônio Francisco de Almeida da
author_role author
dc.contributor.author.fl_str_mv Silva Júnior, Antônio Francisco de Almeida da
dc.subject.por.fl_str_mv International reserves
Crisis
Central Banks
Insurance
Risk management
topic International reserves
Crisis
Central Banks
Insurance
Risk management
description There is no standard rule for the definition of an optimal amount of international reserves and several assumptions underlie the rationale behind holding reserves. There are various theoretical approaches, but no standard for the evaluation of the performance of optimal level models, and their parameters are difficult to estimate. The literature suggests that the benefits of holding reserves are high, but the accumulation of reserves is a costly strategy. In fact, in a world of high liquidity and free capital flow, establishing an optimal level for international reserves is still a puzzle. The strategy of accumulating international reserves is evaluated here using data from the 2008-2010 crisis. It is shown that countries with higher international reserve holdings had less adjustment costs during the global financial crisis. The cost-benefit relationship of holding reserves is also discussed based on a sample of 71 countries.
publishDate 2016
dc.date.issued.fl_str_mv 2016
dc.date.accessioned.fl_str_mv 2019-01-09T21:33:23Z
dc.date.available.fl_str_mv 2019-01-09T21:33:23Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
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status_str publishedVersion
dc.identifier.uri.fl_str_mv http://repositorio.ufba.br/ri/handle/ri/28354
dc.identifier.issn.none.fl_str_mv 2371-2112
dc.identifier.number.pt_BR.fl_str_mv v. 1, n. 3, p. 1-24
identifier_str_mv 2371-2112
v. 1, n. 3, p. 1-24
url http://repositorio.ufba.br/ri/handle/ri/28354
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.publisher.country.fl_str_mv Brasil
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institution UFBA
reponame_str Repositório Institucional da UFBA
collection Repositório Institucional da UFBA
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