International reserves, growth and effective demand

Peter Kriesler and Moritz Cruz

No 2008-16, Discussion Papers from School of Economics, The University of New South Wales

Abstract: During the last decade, developing (and some developed) economies have accumulated large amounts of international reserves, mainly for precautionary reasons. This phenomenon has been coupled with moderate economic growth. The resources being amassed largely overwhelm protective needs, there is an excess of resources that is being wasted, and which could be utilised for alternative productive projects, namely to promote growth. If insufficient aggregate demand can largely explain low growth, it is clear that this excess of international reserves can be used to stimulate aggregate demand. This paper argues that the excess of international reserves represents a potential source to boost growth.

Keywords: international reserves; aggregate demand; economic growth (search for similar items in EconPapers)
JEL-codes: F30 F40 O11 O19 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2008-10
New Economics Papers: this item is included in nep-dev, nep-fdg and nep-opm
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://wwwdocs.fce.unsw.edu.au/economics/Research/WorkingPapers/2008_16.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:swe:wpaper:2008-16

Access Statistics for this paper

More papers in Discussion Papers from School of Economics, The University of New South Wales Contact information at EDIRC.
Bibliographic data for series maintained by Hongyi Li ().