Reserve overstocking in a highly integrated world. New evidence from Asia and Latin America

@inproceedings{Cifarelli2008ReserveOI,
  title={Reserve overstocking in a highly integrated world. New evidence from Asia and Latin America},
  author={Giulio Cifarelli and Giovanna Paladino},
  year={2008}
}
Monthly data are used to investigate reserves management in eight Asian and Latin American countries. Idiosyncratic explanatory variables enter into co-integration relationships based on a stochastic buffer stock model, where a reserve variability measure is obtained via conditional variance approaches. International factors influence the co-integration residuals (representing the excess demands for reserves), which tend to co-move within and across geographical areas. Principal components… CONTINUE READING

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