Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062243 | Economics Letters | 2007 | 9 Pages |
Abstract
We present a model that determines both monetary policy and level of international reserves. Strict monetary policy would build precautionary reserves that allow future monetary policy to better stabilize inflation and output and lower the likelihood of forthcoming financial crisis.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Avner Bar-Ilan, Dan Lederman,