TY - BOOK ID - 84658565 TI - Accounting for Reserves AU - Bayoumi, Tamim. AU - Saborowski, Christian. PY - 2012 SN - 1475529120 1475556691 1299264425 1475576110 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign exchange reserves KW - Finance, Public. KW - Cameralistics KW - Public finance KW - Public finances KW - Currency question KW - Currency reserves, Foreign KW - Foreign currency reserves KW - Foreign reserves (Foreign exchange reserves) KW - International reserves (Foreign exchange reserves) KW - Reserves, Foreign exchange KW - Finance, Public KW - Reserves (Accounting) KW - Econometric models. KW - Banks and Banking KW - Exports and Imports KW - International Finance: General KW - Foreign Exchange KW - Current Account Adjustment KW - Short-term Capital Movements KW - Monetary Policy KW - International Investment KW - Long-term Capital Movements KW - International economics KW - Banking KW - Current account KW - Reserves accumulation KW - Capital account KW - International reserves KW - Capital controls KW - Balance of payments KW - Central banks KW - Capital movements KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84658565 AB - Views on the effectiveness of sterilized reserve intervention vary. Sterilized intervention is generally seen as ineffective in advanced countries while persistent intervention by some emerging markets is often cited as contributing to undervalued exchange rates and current account surpluses. This paper argues that capital controls reconcile these views. We find strong and highly robust evidence that sterilized intervention is fully offset by outflows of private money in countries without controls, while controls partially block this offset. For a country with extensive capital controls, every dollar in additional reserves increases the current account by some 50 cents. This is mainly offset by an opposite adjustment in the current account of the United States—the dominant reserve currency issuer with the deepest and most liquid bond markets—with a smaller diversion to other emerging markets. ER -