Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/226334
Authors: 
Jinjarak, Yothin
Noy, Ilan
Ta, Quy
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper No. 8632
Abstract: 
We evaluate the change in international reserves in the aftermath of significant external shocks. We examine the response of international reserves to shocks by using a quasi-experimental setup and focusing on earthquakes. The estimation is done on a panel of 103 countries over the period 1979–2016. We find that in the five years following a large earthquake (i) countries exposed accumulate reserves, for precautionary reasons, (ii) trade openness is positively associated with the post-earthquake reserves accumulation, (iii) episodes of reserves depletion are observed in countries under the fixed exchange rate and/or inflation targeting regimes, and (iv) the patterns of reserves holding post-earthquake vary with a country's income level.
Subjects: 
disasters
earthquakes
international reserves
foreign exchange holding
JEL: 
F31
F41
Q54
Document Type: 
Working Paper

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