Joshua Aizenman, Yin-Wong Cheung , Hiro Ito, Saturday, September 13, 2014 - 00:00

Matthieu Bussière, Gong Cheng, Menzie D. Chinn, Noëmie Lisack, Sunday, March 16, 2014 - 00:00

The financial crisis that swept the global economy at the end of 2008 provides a natural experiment to test the proposition that international reserves are useful during crises. This column presents cross-country evidence based on a panel of 112 emerging and developing countries. Countries with more reserves relative to short-term debt fared better.

Guillermo Calvo, Tuesday, October 27, 2009 - 00:00

How did turmoil in the US subprime mortgage market ignite a global crisis? This column explains how emerging markets’ voracious appetite for international reserves coupled with record-low US policy interest rates and lax financial regulation to produce the large-scale creation of quasi-money subject to self-fulfilling-expectations runs. The theory suggests significant changes in Fed and regulatory policy are needed.

Joshua Aizenman, Yi Sun, Thursday, October 15, 2009 - 00:00

Emerging markets accumulated massive international reserves over the last decade. This column explores how they used them to respond to the crisis. Economies that accumulated reserves for trade concerns drew them down in response to the shock, while economies driven by financial factors showed a “fear of depleting”.

Alan Taylor, Friday, July 11, 2008 - 00:00

Alan Taylor of the University of California Davis talks to Romesh Vaitilingam about the first era of globalisation and the policy lessons that researchers in economic history and international economics are drawing for contemporary experiences of financial market integration, trade liberalisation and the growth of international reserves. The interview was recorded at the American Economic Association meetings in New Orleans in January 2008.

CEPR Policy Research