Insurance Underwriter or Financial Development Fund: What Role for Reserve Pooling in Latin America?

Barry Eichengreen

No 12451, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The accumulation of international reserves by emerging markets raises the question of how to best utilize these funds. This paper explores two routes through which the pooling of reserves could enhance stability and welfare. First, the reserve pool could be used for emergency lending in response to sudden stops. Second, a portion of the reserve pool along with borrowed funds could be used to purchase contingent debt securities issued by governments and corporations, helping to solve the first-mover problem that limits the liquidity of markets in these instruments and hinders their acceptance by private investors. This paper argues that the second option is more likely to be feasible and productive.

JEL-codes: F0 F02 F39 (search for similar items in EconPapers)
Date: 2006-08
New Economics Papers: this item is included in nep-cba and nep-fmk
Note: IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Published as Barry Eichengreen, 2007. "Insurance Underwriter or Financial Development Fund: What Role for Reserve Pooling in Latin America?," Open Economies Review, Springer, vol. 18(1), pages 27-52, February.

Downloads: (external link)
http://www.nber.org/papers/w12451.pdf (application/pdf)

Related works:
Journal Article: Insurance Underwriter or Financial Development Fund: What Role for Reserve Pooling in Latin America? (2007)
Working Paper: Insurance underwriter or financial development fund: what role for reserve pooling in Latin America? (2006)
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:nbr:nberwo:12451

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w12451

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().