International reserves and the mercantilist approach: some further evidence

Using data from 59 economies for the period 1996-2011, we assess whether international reserves depreciate the exchange rate, as the mercantilist motive for accumulating international reserves holds. Our results suggest that international reserves tend to be associated with appreciations of the real exchange rate; this evidence is opposite to the mercantilist view, implying that they do not contribute to growth and development.

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Year of publication:	2014-03-05
Authors:	Cruz, Moritz
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 34.2014, 1, p. 446-451
Publisher:	AccessEcon
Subject:	international reserves \| real exchange rate \| growth and development \| mercantilism

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Extent:	application/pdf
Type of publication:	Article
Classification:	F0 - International Economics. General ; E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010748234