Financial Crisis Management in Emerging Countries: Optimal Level of International Reserves and Ex Ante Conditions for an International Lender of Last Resort Intervention

Ben Hassine Khalladi, hela (2015): Financial Crisis Management in Emerging Countries: Optimal Level of International Reserves and Ex Ante Conditions for an International Lender of Last Resort Intervention.

Abstract

In this paper, we approach financial crises from two different aspects: Prevention and Management. Prevention from crises, here sudden stops, will be carried out through international reserves accumulation (Jeanne & Rancière model, 2006). The section of crises management will be undertaken by an International Lender of last Resort (ILOLR), here the International Monetary Fund (IMF). Our study shows that under an optimal level of international reserves, countries should resort to international lending, but the efficiency of this latter depends on countries’ eligibility, i.e their external, budget and financial sustainability.

• Item Type: MPRA Paper
• Language: English
• Keywords: Financial crises, sudden stops, IMF, international reserves
• Subjects: F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements; F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems

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