rdf-syntax-grammar
mods:
  schema location: http://www.loc.gov/mods/v3 http://www.loc.gov/standards/mods/v3/mods-3-2.xsd
  title info:
    title: Reserve requirements in the brave new macroprudential world
  name:
    name part: Cordella, Tito.
    role:
      role term: creator
  name:
    name part: Federico, Pablo.
  name:
    name part: Végh Gramont, Carlos A.
    name part: 1958-
  name:
    name part: Vuletin, Guillermo Javier.
  name:
    name part: Ebook Library
  type of resource: text
  genre: bibliography
  genre: Electronic books.
  origin info:
    place:
      place term: dcu
    date issued: 2014
    issuance: monographic
  language:
    language term: eng
  physical description:
    form: remote
    extent: 1 online resource (55 pages) : illustrations
  abstract: In the aftermath of the global financial crisis, it is hard to find any macroeconomic policy report that does not include some reference to financial stability or systemic risk and the resulting need for "macroprudential policies." While there is a large and growing literature on macroprudential policies and financial stability, less attention has been paid to how macroprudential policies may facilitate macroeconomic stabilization in the presence of large capital flows. To fill such a gap, this report looks at the use of reserve requirements (RR) as a macroprudential tool. Its findings should be of particular interest to emerging market economists and policymakers that are faced with difficult questions regarding how to cope effectively with volatile capital flows. The analysis builds upon a new dataset on quarterly RR covering a large number of industrial and developing countries for the period 1970-2011. It finds that while no industrial country has resorted to active RR policy since 2004, almost half of developing countries have. Indeed, together with interest rates adjustments and forex interventions, RR seem to be an important component of a trio of policy instruments that developing countries have relied upon to navigate through the boom-bust cycles driven by capital flows. The ultimate reason for resorting to RR lies essentially on the procyclical behavior of the exchange rate over the business cycle in developing countries (with the currency depreciating in bad times and appreciating in good times) that complicates enormously the use of interest rates as a countercyclical instrument.
  abstract: Under such circumstances, RR are an effective instrument that can be used countercyclically when concerns about the effects of interest rates on the exchange rate become paramount. Finally, the report suggests that while, from a macroprudential point of view, the most common macroprudential instruments are equivalent, from a microprudential one they are not. Conflicts may thus arise between the micro- and macro-prudential policy stances. In addition, the overall design of macroprudential policies should follow a careful analysis of the role that different financial frictions play in various environments since similar symptoms can reflect very different underlying forces.
  table of contents: Front Cover; Contents; Preface; Acknowledgments; About the Authors; Abbreviations; Executive Summary; Chapter 1 Introduction; Chapter 2 Stylized Facts; Which Countries Have Used Reserve Requirements as a Macroeconomic Stabilization Tool?; Figures; Figure 2.1 Frequency of Changes in Reserve Requirements (1970-2011); What Have Been the Cyclical Properties of RR as a Macroeconomic Stabilization Tool?; Figure 2.2 Active versus Passive Reserve Requirement Policy (1970-2011); Figure 2.3 Frequency of Changes in Reserve Requirements (2005-11)
  table of contents: Figure 2.4 Cyclicality of Reserve Requirement Policy (1970-2011); Figure 2.5a Cyclicality of Reserve Requirement Policy (1970-2004); Figure 2.5b Cyclicality of Reserve Requirement Policy (2005-11); How Is RRP Related to the Credit Cycle?; Figure 2.6 Correlation of Private Credit with GDP (1970-2011); What Is the Relation between RRP and Monetary Policy?; Figure 2.7 Private Credit for Developing Countries (1970-2011); Figure 2.8 Cyclicality of RRP versus Private Credit (Active Countries, 1970-2011); Figure 2.9 Cyclicality of Interest Rate Policy (1970-2011)
  table of contents: Figure 2.10a Cyclicality of Interest Rate Policy (1970-2004); Figure 2.10b Cyclicality of Interest Rate Policy (2005-11); Tables; Table 2.1 Policy Mix Matrix (1970-2011); How Does Foreign Exchange Market Intervention Fit into the Picture?; Table 2.2a Policy Mix Matrix (1970-2004); Table 2.2b Policy Mix Matrix (2005-11); Figure 2.11 Cyclicality of International Reserves (1970-2011); Figure 2.12 Monetary versus Foreign Exchange Market Intervention Policy (1970-2011); Figure 2.13 RRP versus Foreign Exchange Market Intervention (1970-2011)
  table of contents: Chapter 3 An Illustration of Policy Responses for Four Latin American Countries; Figure 3.1 Policy Response to a Real GDP Shock (One Standard-Deviation Shock); Figure 3.2 Policy Response to a Nominal Exchange Rate Depreciation Shock; Boxes; Box 3.1 The Narrative Approach to Identification; Chapter 4Policy Rationale; The Need for a Second Instrument; Figure 4.1 Cyclicality of Nominal Exchange Rates (1970-2011); Why Do RR Often Serve as the Second Instrument?; Figure 4.2 Monetary versus "Currency Defense" Policy (1970-2011); Which Country Characteristics Explain Different Policy Mixes?
  table of contents: Figure 4.3 Relative Effect of Reserve Requirement versus Monetary PolicyTable; 4.1 Currency Crises and Policy Mix; Table 4.2 Credit and Policy Mix; Table 4.3 Capital Account Openness and Policy Mix; Chapter 5Microprudential Effects of Business Cycle Management; Box 5.1 Macroprudential Policy in Emerging Markets: The Cases of Brazil and Turkey; Tradeoffs over the Business Cycle; Chapter 6Policy Tensions and Tradeoffs; Chapter 7Policy Conclusions; Bibliography; Back Cover
  note: Tito Cordella, Pablo M. Federico, Carlos A. Vegh, and Guillermo Vuletin.
  note: Description based upon print version of record.
  note: Electronic resource.
  subject:
    topic: Business cycles
  subject:
    topic: Capital movements
  subject:
    topic: Foreign exchange rates
  subject:
    topic: Monetary policy
  subject:
    topic: Money supply
  classification: HG221 .C384 2014eb
  classification: 338.1923470
  related item:
    title info:
      title: Reserve Requirements in the Brave New Macroprudential World
    name:
      name part: Cordella, Tito
    origin info:
      publisher: Washington : World Bank Publications,c1905
  related item:
    title info:
      title: World Bank studies
  identifier: 9781464802133
  identifier: 1464802130
  identifier: https://ebookcentral.proquest.com/lib/tamucs/detail.action
  record info:
    record content source: EBLCP
    record creation date: 140426
    record change date: 20250816203836.6
    record identifier: in00003450530
    language of cataloging:
      language term: eng