 The financial crisis and sizable international reserves depletion: From ‘fear of floating’ to the ‘fear of losing international reserves’?Joshua Aizenman and Yi Sun International Review of Economics & Finance, 2012, vol. 24, issue C, 250-269 Abstract: We explain the size of international reserve depletion during the global crisis, where only about half of the EMs drew down their reserves as part of the adjustment mechanism. Countries that internalized their large exposure to trade shocks before the crisis, used their IR as a buffer stock in the first phase of the crisis. After a rapid initial depletion of reverses, they reached a markedly declining rate of IR depletion, losing not more than one-third of their pre-crisis IR. The adjustment of EMs was constrained more by their fear of losing reserves than by their fear of floating. Keywords: Trade shocks; Deleveraging; International reserves; Emerging markets (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:24:y:2012:i:c:p:250-269 DOI: 10.1016/j.iref.2012.03.004 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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