TY  - JOUR
AU  - Reinhart,Carmen M.
AU  - Reinhart,Vincent R.
TI  - Capital Inflows and Reserve Accumulation: The Recent Evidence
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13842
PY  - 2008
Y2  - March 2008
UR  - http://www.nber.org/papers/w13842
L1  - http://www.nber.org/papers/w13842.pdf
N1  - Author contact info:
Carmen M. Reinhart
University of Maryland
School of Public Policy
and Department of Economics
4105 Van Munching Hall
College Park, MD 20742
Tel: 301/405-7006
Fax: 301/403-8107
E-Mail: creinhar@umd.edu

Vincent Reinhart
American Enterprise Institute
1150 Seventeenth Street, N.W.
Washington, DC 20036
Tel: 202-419-5203
Fax: 202-862-7177
E-Mail: vincent.reinhart@aei.org
AB  - Over the past decade, policymakers in many emerging market economies have opted to limit fluctuations of the value of their domestic currencies relative to the U.S. dollar.  A simple interest-parity relationship is used to identify the potential sources of upward pressure on the value of a foreign exchange rate and to explain the policy options to damp them.  The paper then documents the extent to which the accumulation of foreign exchange reserves has been sterilized and  provides a comprehensive list of major policy initiatives related to stemming forces that would otherwise appreciate the exchange rate in over one hundred countries.  This examination of policy efforts shows that a wide variety of tools are used in the attempt to stem the tide of capital flows.
ER  -