1st Lille-Reading Workshop on International FinanceLEM Workshop Manifestations scientifiques Vie du laboratoire Research
University of Lille
There has been a recent upward trend in central banks’ holdings of international reserves.What are the causes and the consequences of such a trend? Do central banks aim atbuilding buffers as an insurance against shocks (sudden stops, capital flight or a fall incommodity prices)? Do they seek to alter the real exchange rate? Is foreign exchangeintervention a mean to conduct standard monetary policy despite the zero lower boundconstraint? Do countries have large international reserves to retain some autonomy in theconduct of monetary policy with a flexible exchange rate and open capital accounts? Or isthe accumulation of international reserves a tool for financial stability? Does theaccumulation of international reserves spur inflation and private debt?