Are Developing Asia’s Foreign Exchange：Reserves Excessive? An Empirical Examination
Donghyun Park and Gemma B. Estrada
No. 170 | August 2009
Contents
Abstract v
I. Introduction 1
II. Stylized Facts of Developing Asia’s Reserve Build-Up
and the Concept of Excess Reserves 2
A. Stylized Facts of Developing Asia’s Reserve Accumulation 3
B. The Concepts of Optimal Reserves and Excess Reserves 5
III. Are Developing Asia’s Reserves Excessive? An Informal Examination 7
IV. Are Developing Asia’s Reserves Excessive? An Econometric Examination 10
V. Concluding Observations 16
References 18