The low level of global interest rates and the high liquidity resulting from the quantitative easing policies adopted by advanced countries in the wake of the global financial crisis of 2007–09 bolstered capital flows to emerging market economies. However, the uncertainties relating to the...

In this study, the predictability powers of three indicators of international reserve adequacy, namely external short-term debt to total reserves, broad money to total reserves, and reserves in months of imports on currency crisis are analysed. We show that while each indicator has potential in...