Hardback
Central Bank Reserve Management
New Trends, from Liquidity to Return
9781845429577 Edward Elgar Publishing
This book addresses the welfare gains and costs of accumulating foreign exchange reserves and the implications for the functioning of the global financial system. The tremendous growth of central bank reserves has led to an increased focus on raising returns in addition to the traditional preference central banks have for maintaining liquid portfolios. Issues such as asset and currency diversification, the impact of new accounting rules and the profit distribution agreements with the government are analysed, adding new insights to the current debate on the optimal size of central bank reserves. This book brings together a wide range of experts from central banks, investment banks and the academic community.
More Information
Contributors
Contents
More Information
This book provides first-hand insights on the modern considerations governing official reserve holdings and investment in different asset classes. Tremendous growth of central bank reserves has led to an increased focus on raising returns in addition to the traditional preference central banks have for maintaining liquid portfolios. Leading experts from central banks, investment banks and the academic community elucidate on this and related issues.
The expert contributors adopt a unique approach in their explicit linkage of the increased focus on return by central banks and the implications of new accounting rules (IFRS) for income recognition and profit distribution. They also address the welfare gains and costs of accumulating foreign exchange reserves and the implications for the functioning of the global financial system, as well as:
• asset and currency diversification
• changing reserve management practices in the face of steeply growing official reserve holdings
• new risk management techniques
• profit distribution agreements.
Central Bank Reserve Management will prove a valuable information resource for researchers and academics with an interest in central banking issues and asset management, financial sector, government and central bank officials, and representatives of international financial institutions.
The expert contributors adopt a unique approach in their explicit linkage of the increased focus on return by central banks and the implications of new accounting rules (IFRS) for income recognition and profit distribution. They also address the welfare gains and costs of accumulating foreign exchange reserves and the implications for the functioning of the global financial system, as well as:
• asset and currency diversification
• changing reserve management practices in the face of steeply growing official reserve holdings
• new risk management techniques
• profit distribution agreements.
Central Bank Reserve Management will prove a valuable information resource for researchers and academics with an interest in central banking issues and asset management, financial sector, government and central bank officials, and representatives of international financial institutions.
Contributors
Contributors: A.F.P. Bakker, H.S. Choo, J. Fels, H. Ferhani, R. Grava, P. Hakkaraïnen, M. Higgins, D. Howard, E. Jadresic, J. Johnson-Calari, A. Kobor, H.-H. Kotz, R. Litterman, R.N. McCauley, L. Niedermayer, F. Papadia, A. Persaud, M. Pösö, V.K. Sharma, H. Sogano, I. Strauss-Kahn, I.R.Y. van Herpt, F. Würtz, A. Yip
Contents
Contents:
Preface
1. Central Bank Reserve Management: Trends and Issues
Age F.P. Bakker and Ingmar R.Y. van Herpt
PART I: THE SIZE OF CENTRAL BANK RESERVES
2. Assessing the Benefits and Costs of Official Foreign Exchange Reserves
Robert N. McCauley
3. The Politics and Micro-Economics of Global Imbalances
Avinash Persaud
4. The Cost–Benefit Approach to Reserve Adequacy: The Case of Chile
Esteban Jadresic
5. Foreign Reserve Adequacy from the Asian Perspective
Hidehiko Sogano
6. Dealing with Reserve Accumulation: The Case of Korea
Heung Sik Choo
7. Reserve Accumulation: A View from the United States
Matthew Higgins
PART II: RESERVE MANAGEMENT: RETURN VERSUS LIQUIDITY
8. Trends in Reserve Management by Central Banks
Jennifer Johnson-Calari, Robert Grava and Adam Kobor
9. Implications of Growing Reserves of Central Banks for Asset Allocation
Amy Yip
10. Setting the Strategic Benchmark Duration and Currency Allocation: A Developing Country Case Study
Vinod Kumar Sharma
11. Observations on the Return versus Liquidity Debate: The Canadian Perspective
Donna Howard
12. A European View on Return versus Liquidity
Pentti Hakkaraïnen and Mika Pösö
13. The Composition of Central Bank Reserves: The Market Perspective
Joachim Fels
14. Central Bank Risk Management: The Case of the Czech National Bank
Ludek Niedermayer
15. Returns from Alpha and Beta: An Equilibrium Approach to Investing
Robert Litterman
16. The Conservative Approach to Central Bank Reserve Management
Hans-Helmut Kotz and Isabel Strauss-Kahn
PART III: IMPLICATIONS FOR CENTRAL BANK BALANCE SHEETS
17. Central Bank Balance Sheets: Comparisons, Trends and Some Thoughts
Francesco Papadia and Flemming Würtz
18. Governance Aspects of Central Bank Reserve Management
Age F.P. Bakker
19. Too Much of a Good Thing: Reserve Accumulation and Volatility in Central Bank Balance Sheets
Hervé Ferhani
References
Index
Preface
1. Central Bank Reserve Management: Trends and Issues
Age F.P. Bakker and Ingmar R.Y. van Herpt
PART I: THE SIZE OF CENTRAL BANK RESERVES
2. Assessing the Benefits and Costs of Official Foreign Exchange Reserves
Robert N. McCauley
3. The Politics and Micro-Economics of Global Imbalances
Avinash Persaud
4. The Cost–Benefit Approach to Reserve Adequacy: The Case of Chile
Esteban Jadresic
5. Foreign Reserve Adequacy from the Asian Perspective
Hidehiko Sogano
6. Dealing with Reserve Accumulation: The Case of Korea
Heung Sik Choo
7. Reserve Accumulation: A View from the United States
Matthew Higgins
PART II: RESERVE MANAGEMENT: RETURN VERSUS LIQUIDITY
8. Trends in Reserve Management by Central Banks
Jennifer Johnson-Calari, Robert Grava and Adam Kobor
9. Implications of Growing Reserves of Central Banks for Asset Allocation
Amy Yip
10. Setting the Strategic Benchmark Duration and Currency Allocation: A Developing Country Case Study
Vinod Kumar Sharma
11. Observations on the Return versus Liquidity Debate: The Canadian Perspective
Donna Howard
12. A European View on Return versus Liquidity
Pentti Hakkaraïnen and Mika Pösö
13. The Composition of Central Bank Reserves: The Market Perspective
Joachim Fels
14. Central Bank Risk Management: The Case of the Czech National Bank
Ludek Niedermayer
15. Returns from Alpha and Beta: An Equilibrium Approach to Investing
Robert Litterman
16. The Conservative Approach to Central Bank Reserve Management
Hans-Helmut Kotz and Isabel Strauss-Kahn
PART III: IMPLICATIONS FOR CENTRAL BANK BALANCE SHEETS
17. Central Bank Balance Sheets: Comparisons, Trends and Some Thoughts
Francesco Papadia and Flemming Würtz
18. Governance Aspects of Central Bank Reserve Management
Age F.P. Bakker
19. Too Much of a Good Thing: Reserve Accumulation and Volatility in Central Bank Balance Sheets
Hervé Ferhani
References
Index
