Suchergebnisse

In today's international monetary system, a country's stock of international reserves plays a critical role in determining the nature and the extent to which it can successfully pursue policies to promote growth, development, and stability. If its reserves are insufficient, the country will generally have to sacrifice some internal economic goals, instituting policies which tend to deflate the domestic economy and to discourage international trade. Excessive reserves, on the other hand, may impart an inflationary bias on the economy; and at the same time, superfluous reserves may be a costly way of tying up national wealth, especially for poorer nations. Since the "right" amount of reserves will differ from one nation to another, it is important to understand those factors which determine the amount of reserves which a country is willing and able to hold at a particular time.