Reserve requirements and capital flows in Latin America

Brei, Michael; Moreno, Ramon

Type de document :

Compte-rendu et recension critique d'ouvrage

DOI :

10.1016/j.jimonfin.2019.102079

Titre :

Reserve requirements and capital flows in Latin America

Auteur(s) :

Brei, Michael [Auteur]

EconomiX [EconomiX]
Lille économie management - UMR 9221 [LEM]
Moreno, Ramon [Auteur]

Titre de la revue :

Journal of International Money and Finance

Pagination :

102079

Éditeur :

Elsevier

Date de publication :

2019-12

ISSN :

0261-5606

Mot(s)-clé(s) en anglais :

Reserve requirements
Monetary policy
Capital flows

Discipline(s) HAL :

Sciences de l'Homme et Société/Economies et finances

Résumé en anglais : [en]

The experience of a number of central banks in emerging economies indicates that capital flows can pose a dilemma. For example, raising policy rates can attract more capital inflows by raising deposit rates. It has been ...
Lire la suite >The experience of a number of central banks in emerging economies indicates that capital flows can pose a dilemma. For example, raising policy rates can attract more capital inflows by raising deposit rates. It has been suggested, however, that raising reserve requirements instead of the policy rate can address this dilemma, as deposit rates will not necessarily increase, even if lending rates rise. To investigate this possibility, this paper examines how banks adjust loan and deposit rates in response to changes in reserve requirements. We use data on 97 banks from five Latin American countries over the period 2000–14. Our results indicate that higher reserve requirements are associated with lower deposit rates, whereas loan rates remain unchanged during normal times and increase during periods of large capital inflows. Reserve requirements may therefore be a way to mitigate the dilemma posed by capital inflows in some Latin American economies.Lire moins >

Langue :

Anglais

Vulgarisation :

Non

Collections :

Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL

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