Gong Cheng

6a, Circuit de la Foire Internationale
L-1347 Luxembourg

E-Mail: g.cheng@esm.europa.eu
Institutional Affiliation: European Stability Mechanism

NBER Working Papers and Publications

January 2014For a Few Dollars More: Reserves and Growth in Times of Crises
with Matthieu Bussière, Menzie D. Chinn, Noëmie Lisack: w19791
Based on a dataset of 112 emerging economies and developing countries, this paper addresses two key questions regarding the accumulation of international reserves: first, has the accumulation of reserves effectively protected countries during the 2008-09 financial crisis? And second, what explains the pattern of reserve accumulation observed during and after the crisis? More specifically, the paper investigates the relation between international reserves and the existence of capital controls. We find that the level of reserves matters: countries with high reserves relative to short-term debt suffered less from the crisis, particularly if associated with a less open capital account. In the immediate aftermath of the crisis, countries that depleted foreign reserves during the crisis quickly ...

Published: Bussière, Matthieu & Cheng, Gong & Chinn, Menzie D. & Lisack, Noëmie, 2015. "For a few dollars more: Reserves and growth in times of crises," Journal of International Money and Finance, Elsevier, vol. 52(C), pages 127-145. citation courtesy of

National Bureau of Economic Research
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