TY - BOOK ID - 85502388 TI - Uphill Capital Flows and the International Monetary System AU - Csonto, Balazs. AU - Tovar Mora, Camilo. PY - 2017 SN - 1484313356 1484313321 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Exports and Imports KW - Investments: General KW - Interest Rates: Determination, Term Structure, and Effects KW - Financial Markets and the Macroeconomy KW - Central Banks and Their Policies KW - International Policy Coordination and Transmission KW - Globalization: Macroeconomic Impacts KW - International Financial Markets KW - Monetary Policy KW - International Investment KW - Long-term Capital Movements KW - General Financial Markets: General (includes Measurement and Data) KW - Banking KW - International economics KW - Investment & securities KW - Finance KW - Capital flows KW - Securities KW - Reserves accumulation KW - Yield curve KW - International reserves KW - Balance of payments KW - Financial institutions KW - Central banks KW - Financial services KW - Foreign exchange reserves KW - Capital movements KW - Financial instruments KW - Interest rates KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:85502388 AB - Uphill capital flows constitute a key transmission channel through which reserve accumulation can distort the stability of the international monetary system. This paper examines and quantifies the importance of this transmission channel by examining how foreign official purchases of U.S. Treasuries influences the U.S. yield curve at different maturities. Our findings suggest that a percentage point increase in foreign official holdings relative to outstanding marketable securities reduces the term premium by 2.0–2.4 basis points at maturities of 2–3 years. These estimates are then used to gauge the role of a global policy in reducing excess reserve accumulation?e.g., a composite global reserve asset or through global liquidity facilities. Findings show that a policy that reduces the demand for Treasuries by $100 billion would increase yields by 1.5–1.8 basis points. ER -