For a few dollars more: Reserves and growth in times of crises

Matthieu Bussière, Gong Cheng, Menzie D. Chinn , Noëmie Lisack, 16 March 2014



In the decade preceding the 2008 global financial crisis (GFC), emerging market economies accumulated large stocks of international reserves (see Figure 1). The unprecedented pace of reserve accumulation was at least partly a response to the lessons drawn from previous financial crises, which predominantly affected emerging markets.

Topics: International finance
Tags: capital controls, financial crises, international reserves

Reserve accumulation and easy money helped to cause the subprime crisis: A conjecture in search of a theory

Guillermo Calvo, 27 October 2009



A view that is gaining popularity as one of the fundamental explanations for the current crisis is that emerging markets’ voracious appetite for international reserves coupled with record-low US policy interest rates and lax financial regulation to produce a frantic “search for yield,” the creation of fragile financial instruments, and occasionally outright fraud.

Topics: Global crisis, International finance
Tags: financial regulation, global crisis, international reserves

International reserve losses in the 2008-9 crisis: From “fear of floating” to the “fear of losing international reserves”?

Joshua Aizenman, Yi Sun, 15 October 2009



Investigating the patterns of exchange rates, interest rates, and international reserves during 1970-1999, Calvo and Reinhart (2002) inferred the prevalence of the “fear of floating”.

Topics: International finance
Tags: fear of floating, global crisis, international reserves, reserves

Globalisation: Lessons from the past

Alan Taylor interviewed by Romesh Vaitilingam, 11 Jul 2008

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.


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Topics: Economic history, Global economy, International finance
Tags: financial market integration, globalisation, international reserves, trade liberalisation

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