Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74608
Authors: 
Hoffmann, Andreas
Loeffler, Axel
Year of Publication: 
2013
Series/Report no.: 
Working Paper, Universität Leipzig, Wirtschaftswissenschaftliche Fakultät 120
Abstract: 
The paper attempts to shed light on the link between monetary policy in large economies with international currencies (the United States and the euro area) and the use of reserve requirements in emerging markets. Using reserve requirement data for 28 emerging markets from 1998 to 2012 we provide evidence that emerging markets tend to raise reserve requirements and repress financial markets to curb speculative capital inflows when interest rates in the major economies decline. Our finding suggests that the current low interest rate policies of the major economies may have collateral effects on emerging markets by triggering financially repressive policies.
Subjects: 
Reserve Requirements
Financial Repression
Emerging Markets
JEL: 
E52
E58
Document Type: 
Working Paper

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