PL EN


2007 | 4 | 457-490
Article title

Global Reserves Management

Authors
Title variants
Languages of publication
EN
Abstracts
EN
The article presents factors behind rapid growth of foreign exchange reserves held by central banks (in ten years reserves more than tripled, to over 5 trillion dollars in 2006). Authors present a new concept, OCHAR-Opportunity Cost of Holding Ample Reserves, which is defined as a forgone GDP growth due to too conservative reserve management by central banks. Paper presents OCHAR estimates for 33 countries accounting for three-quarters of world's foreign exchange reserves. Within the framework of growing central bank transparency one can observe that best practices are adopted by an increasing number of central banks, which includes flexible inflation targeting as well as efficient reserves management. It can be said that central banks embarked on a collective reserves diversification journey. Article presents some hypotheses on the possible outcomes of this diversification process and postulates that new steady states of relative asset prices may be significantly different from those seen in the XX century. Authors consider the global stability risks within the context of new global reserves management strategy and postulate that central banks and governments in countries-stakeholders of global imbalances should step up efforts to preserve global price stability and global financial stability.
Year
Issue
4
Pages
457-490
Physical description
Document type
ARTICLE
Contributors
author
  • K. Rybinski, Narodowy Bank Polski, ul. Swietokrzyska 11/21, Warszawa, Poland
References
Document Type
Publication order reference
Identifiers
CEJSH db identifier
08PLAAAA03717479
YADDA identifier
bwmeta1.element.1a1e967f-d1af-3fc1-8da2-bcb783d31032
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.