Alfaro, Laura; Kanczuk, Fabio - In: Asset management at central banks and monetary …, (pp. 79-90). 2020
the optimal exchange-rate regime, under the assumptions that countries can accumulate reserves and borrow internationally … fluctuations act to absorb global shocks and render consumption smoother. Countries do not accumulate reserves to be depleted in … “bad” times. Instead, issuing domestic debt while accumulating reserves acts as a hedge against external shocks. We propose …