; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "A Macroprudential Theory of Foreign Reserve Accumulation"; ; "jannelle.ruswick@mpls.frb.org"; "Bengui, Julien", "Bianchi, Javier", "Arce Munoz, Fernando"; "Federal Reserve Bank of Minneapolis"; "Financial crises", "International reserves", "Macroprudential policy"; "E00 - Macroeconomics and Monetary Economics: General", "G00 - Financial Economics: General", "F00 - International Economics: General"; "This paper proposes a theory of foreign reserves as macroprudential policy. We study an open economy model of financial crises, in which pecuniary externalities lead to over-borrowing, and show that by accumulating international reserves, the government can achieve the constrained-efficient allocation. The optimal reserve accumulation policy leans against the wind and significantly reduces the exposure to financial crises. The theory is consistent with the joint dynamics of private and official capital flows, both over time and in the cross section, and can quantitatively account for the recent upward trend in international reserves."^^; "2019-08-26"; "2019-11-01T15:18:25.605949827+00:00"^^; "https://doi.org/10.21034/wp.761"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "2020-02-04T22:10:54.534884264+00:00"^^; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "67", "80", "32"; "Working paper (Federal Reserve Bank of Minneapolis. Research Department)"; "761"; "Financial crises", "Macroprudential policy", "International reserves"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; ; "Publication" . ; .