Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/66507
Authors: 
Steiner, Andreas
Year of Publication: 
2010
Series/Report no.: 
Working Paper, Institute of Empirical Economic Research, University of Osnabrück 84
Abstract: 
Central banks' international reserves have increased significantly in the recent past. While this accumulation has been widely perceived as precautionary savings to prevent financial crises, rising reserves might also endanger monetary and financial stability. This paper sheds new light on the implications for financial stability and assesses the consequences for monetary policy on theoretical and empirical grounds. Our estimation results show that the accumulation of reserves raises the inflation rate, both on the global and the individual-country level.
Subjects: 
international reserves
inflation
panel data analysis
JEL: 
E31
E58
F31
C23
Document Type: 
Working Paper

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