This book provides an insightful, timely, and fresh perspective on the global implications
of the large hoarding of international reserves by emerging markets in recent decades,
offering an essential analysis of global economic challenges in the 21st century. Andreas Steiner’s empirical analysis shows that international reserve accumulation lowers both the current account and the public budget balances of the reserve-currency’s supplier, possibly destabilizing the global system down the road. The key features of this book are:
(a) Presents a systematic account of the relationship between the build-up of reserves and central bank policies; (b) Emphasizes a global view of currency reserves, which is usually ignored in analyses of their effect; and (c) Includes datasets as well as all illustrations and figures in online ancillary materials. Thus, through empirical data links, this book presents a global view of economic imbalances, financial crises, and central bank policies. In addition, the book describes implications for financial reforms that might ultimately be more important than its empirical findings.