Reserve Requirements in the Brave New Macroprudential World

Cordella, Tito ; Federico, Pablo ; Vegh, Carlos ; Vuletin, Guillermo

World Bank, Washington, DC

关键词: ADVERSE EFFECT;    AGENCY PROBLEMS;    ARBITRAGE;    ASYMMETRIC INFORMATION;    BAILOUT;   

DOI  :  10.1596/1813-9450-6793
RP-ID  :  WPS6793

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Using a new, large data set on quarterlyreserve requirements for the period 1970-2011, this paperprovides new evidence on the use of reserve requirements asa countercyclical macroprudential tool in developingcountries. The appeal of reserve requirements lies in thepro-cyclical behavior of the exchange rate over the businesscycle in developing countries. This enormously complicatesthe use of interest rates as a countercyclical instrument(because of its effect on the exchange rate) and calls for asecond instrument. The paper suggests that conflicts mayarise between the microprudential and macroprudential policy stances.