A farewell to Greenspan-Guidotti rule: has the role of short-term debt as a reserve adequacy indicator disappeared?

Suat Aydın and Cengiz Tunç

Applied Economics Letters, 2025, vol. 32, issue 12, 1769-1773

Abstract: Central banks use mainly three indicators to measure the adequacy of reserves. These are the short-term debt-to-reserves ratio, reserves in months of imports, and broad money-to-reserves ratio. However, in recent literature, it is discussed that the latter two, especially the broad money ratio, are more effective in gauging the probability of a currency crisis. This study shows that with the rapid increase in reserves in 2000s, the ability of short-term debt to predict currency crises has disappeared.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2024.2322590 (text/html)
Access to full text is restricted to subscribers.

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:taf:apeclt:v:32:y:2025:i:12:p:1769-1773

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2024.2322590

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().