Sascha Bützer, Maurizio Habib, Livio Stracca, 07 March 2015

The large dip in oil prices reverberated across asset markets, contributing to the depreciation of the Russian rouble. This column argues that the recent fall of the rouble may be more an exception than the norm. Oil shocks have only a limited impact on global exchange rate configurations, since oil exporters tend to lean against exchange rate pressures by running down or accumulating foreign exchange reserves.

Eswar Prasad, 29 March 2014

Eswar Prasad talks to Viv Davies about his recent book, ‘The Dollar Trap: How the US dollar tightened its grip on global finance’, which examines how, paradoxically, in light of the financial crisis, the dollar continues to play a central role in the world economy and why it will remain the cornerstone of global finance for the foreseeable future. They also discuss the current frameworks for international economic cooperation as well as currency wars, unconventional monetary policy and the prospects for the renminbi becoming the world's reserve currency. The interview was recorded in London in March 2014.

Kristin Forbes, Michael Klein, 24 December 2013

Government interventions to control capital flows and reduce exchange-rate volatility have long been controversial. The Global Financial Crisis has made the debate more urgent. This column discusses recent research that evaluates such policies against the counterfactual of no intervention. Depreciations and reserve sales can boost GDP growth during crises, but may also substantially increase inflation. Large increases in interest rates and new capital controls are associated with reductions in GDP growth, with no significant effect on inflation. When faced with sudden shifts in capital flows, policymakers must ‘pick their poison’.

Atish R. Ghosh, Jonathan D. Ostry, Charalambos Tsangarides, 06 February 2012

Over the past three decades, emerging market economies have been rapidly accumulating reserves – a trend that has resumed, and even accelerated, following the 2008 global financial crisis. This column examines factors driving this accumulation and how these factors have evolved over time and differed across countries.

Jorge Chan-Lau, Marco Espinosa-Vega, Kay Giesecke, Juan Solé, 02 May 2009

The current financial crisis has underscored the problem of institutions that are too connected to be allowed to fail. This column suggests new methodologies that could form the basis for policies and regulation to address the too-connected-to-fail problem.

Joshua Aizenman, Reuven Glick, 16 January 2009

This column provides evidence that there is great deal of difference between the governance standards of the economies in which sovereign wealth funds have been established and the standards of the industrial economies in which they are seeking to invest. It also discusses how the expansion of asset holdings of sovereign wealth funds may reduce official reserve holdings.

Helmut Reisen, 06 December 2008

The global credit crisis is testing the resilience and sustainability of emerging markets’ policies, this column warns. Even strong performers are not shielded against pure financial contagion, although they may well recover quickly once confidence is restored. In the future, development finance is likely to rely less on private debt.

Jeffrey Frankel, 18 March 2008

One of the world’s leading international economists explains how the euro could surpass the dollar as the premier international currency and examines the geopolitical implications of such a shift.

Richard Portes, 14 June 2007

The dollar accounts for two-thirds of international reserves; the euro for about a quarter. But the euro’s share has already risen considerably from only a sixth in 2000, and recent research argues that the euro’s ascent to major international currency status may no longer be as implausible as many still believe.

Charles Wyplosz, 28 May 2007

National foreign-exchange reserves have grown massively over the past ten years. Is this growth unexpectedly large? And is it driven by insurance motives, or does it result from competitiveness-boosting currency manipulation?

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