Journal Article

Reserve Adequacy Explains Emerging-Market Sensitivity to U.S. Monetary Policy


Abstract: Emerging economies that borrow in U.S. dollars are sensitive to U.S. monetary policy due to changing exchange rates. However, the marginal effect of this sensitivity is determined by the relative amount of U.S. dollars held in reserve.

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Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Economic Letter

Publication Date: 2018-12

Volume: 13

Issue: 9

Pages: 1-4