Did Foreign Exchange Holding Influence Growth Performance During The Global Financial Crisis?

Abstract : In a context of increased foreign exchange reserves holding from emerging and developing countries, this paper investigates the diminishing return of reserves holding assumption over the most severe phase of the global financial crisis (2008Q1-2010Q4). Relying on a Panel Smooth Transition Regression model, we highlight the differential effect of the accumulation of foreign exchange reserves for a set of financial vulnerabilities variables. Specifically, while reserve accumulation is effective above a critical threshold to cope with vulnerabilities related to the financial channel, we show that it becomes less effective beyond a certain threshold for domestic bank vulnerabilities.
Document type :
Journal articles
Complete list of metadatas

Cited literature [39 references]  Display  Hide  Download

https://hal.archives-ouvertes.fr/hal-01820698
Contributor : Jean-Pierre Allegret <>
Submitted on : Saturday, June 23, 2018 - 7:54:36 PM
Last modification on : Wednesday, March 6, 2019 - 8:54:47 AM
Long-term archiving on : Wednesday, September 26, 2018 - 9:01:47 PM

File

Final Draft_May 2018.pdf
Files produced by the author(s)

Identifiers

Collections

Citation

Jean-Pierre Allegret, Audrey Allegret. Did Foreign Exchange Holding Influence Growth Performance During The Global Financial Crisis?. The World Economy, Wiley, 2019, 42 (3), pp.680-710. ⟨10.1111/twec.12701⟩. ⟨hal-01820698⟩

Share

Metrics

Record views

151

Files downloads

168