Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130387
Authors: 
Qian, Xingwang
Steiner, Andreas
Year of Publication: 
2016
Series/Report no.: 
Ifo Working Paper 211
Abstract: 
This paper studies how the maturity structure of external debt is affected by internationalreserves and how they reinforce financial stability through a more crisis-resilientmaturity structure. We show in an illustrative theoretical model that reserves lengthenthe maturity of external debt via a flattening of the yield curve. Using data of 66 emergingand developing countries and applying different econometric approaches, we find robustevidence that reserves increase the share of long-term (LT) relative to short-term (ST)external debt. Results hold for private and public external debt individually. Takingreserves and their effect on the debt maturity structure together, they reinforce financialstability.
Subjects: 
International reserves
capital inflows
debt maturity
JEL: 
F30
F40
Document Type: 
Working Paper

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