Examining the interactions of high reserves and weak fundamentals in currency crises

Author: Li, Jie

Source: Applied Economics Letters, Volume 14, Number 8, June 2007 , pp. 617-621(5)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

This article tackles the issue of reserve adequacy measure by examining the interaction of high reserves and weak fundamentals in crises. The author extends the analysis of Sachs et al. (1996) by adopting on two-step regressions. The first helps find the significant weak fundamental variables. The second determines the appropriate adequate reserve level.

Document Type: Research article

DOI: http://dx.doi.org/10.1080/13504850500474186

Affiliations: 1: Chinese Academy of Finance and Development, The Central University of Finance and Economics, Beijing, China

Publication date: 2007-06-01

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