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dc.contributor.authorAizenman, Joshuaen_US
dc.contributor.authorInoue, Kentaen_US
dc.date.accessioned2012-03-13en_US
dc.date.accessioned2012-09-28T12:41:44Z-
dc.date.available2012-09-28T12:41:44Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/64519-
dc.description.abstractWe study the curious patterns of gold holding and trading by central banks during 1979-2010. With the exception of several discrete step adjustments, central banks keep maintaining passive stocks of gold, independently of the patterns of the real price of gold. We also observe the synchronization of gold sales by central banks, as most reduced their positions in tandem, and their tendency to report international reserves valuation excluding gold positions. Our analysis suggests that the intensity of holding gold is correlated with 'global power' - by the history of being a past empire, or by the sheer size of a country, especially by countries that are or were the suppliers of key currencies. These results are consistent with the view that central bank's gold position signals economic might, and that gold retains the stature of a 'safe haven' asset at times of global turbulence. The under-reporting of gold positions in the international reserve/GDP statistics is consistent with loss aversion, wishing to maintain a sizeable gold position, while minimizing the criticism that may occur at a time when the price of gold declines.en_US
dc.language.isoengen_US
dc.publisherUniv. of California at Santa Cruz, Dep. of Economics Santa Cruz, Calif.en_US
dc.relation.ispartofseriesWorking Papers, UC Santa Cruz Economics Department 696en_US
dc.subject.jelE58en_US
dc.subject.jelF31en_US
dc.subject.jelF33en_US
dc.subject.ddc330en_US
dc.subject.keywordInternational reservesen_US
dc.subject.keywordCentral banksen_US
dc.subject.keywordGolden_US
dc.subject.keywordExchange rate regimesen_US
dc.subject.stwZentralbanken_US
dc.subject.stwWährungsreservenen_US
dc.subject.stwGolden_US
dc.subject.stwWechselkurssystemen_US
dc.subject.stwMachten_US
dc.subject.stwWelten_US
dc.titleCentral banks and gold puzzlesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn688524621en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Papers, Economics Department, UC Santa Cruz

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