Theme
Recent Trends in International Reserves: Theory and Evidence
Subject
There has been a recent upward trend in central banks’ holdings of international reserves. What are the causes and the consequences of such a trend? Do central banks aim at building buffers as an insurance against shocks (sudden stops, capital flight or a fall in commodity prices)? Do they seek to alter the real exchange rate? Is foreign exchange intervention a mean to conduct standard monetary policy despite the zero lower bound constraint? Do countries have large international reserves to retain some autonomy in the conduct of monetary policy with a flexible exchange rate and open capital accounts? Or is the accumulation of international reserves a tool for financial stability? Does the accumulation of international reserves spur inflation and private debt? How does climate change or the COVID-19 pandemic affect the accumulation and use of reserves?
Topics (include – but are not limited to):
The optimal level of international reserves
International reserves as a tool for macroprudential policy
Current account imbalances, net foreign assets and international reserves
The zero lower bound, the trilemma and international reserves
The role of reserves in the international transmission of shocks
The consequences of increasing holdings of foreign exchange reserves
Climate change and international reserves
Cryptocurrencies, central bank digital currencies and international reserves
The COVID-19 pandemic and international reserves
Keynote speaker
Gianluca BENIGNO (Federal Reserve Bank of New York)
Special issue
Selected papers will be considered for publication in a special issue of Open Economies Review. Here is the updated call for submissions to this special issue.