Examining The Case For Reserve Pooling In East Asia: Empirical Analysis
Published By: IPS on eSS | Published Date: November, 20 , 2003Two features of East Asia’s recovery from the financial turmoil of 1997-
98 appear to be rather paradoxical. First, the regional economies (except
Hong Kong, China and Malaysia) have allowed a relatively greater albeit
modest degree of variability of their currencies according to market conditions.
Second, the regional monetary authorities have simultaneously appeared
keen on bolstering reserves to historically high levels. This paper examines
the subject of reserve management in the broader context of monetary
cooperation in East Asia. The paper briefly reviews the factors that go into the
determination of “optimal reserves” in general, and specifically in the case of
East Asia. It then goes on to investigate the gains, if any, to be reaped if the
East Asian economies were to pool their reserves. [Working Paper No. 15]
Author(s): Ramkishen S. Rajan, Reza Y. Siregar, Graham Bird | Posted on: Jul 20, 2010 | Views(1463) | Download (904)