Quotation Breuss, Fritz, Roeger, Werner, in't Veld, Jan. 2009. Global Impact of a Shift in Foreign Reserves to Euros. Empirica 36 (1): 101-122.


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Abstract

This paper uses QUEST III, a multi-region global DSGE model, to study the effects of a gradual equalization of the portfolio composition of official foreign reserves between dollars and euros. We simulate a scenario of a shift in the composition of foreign reserves holdings from the present ratio of 65 percent dollars and 25 percent euros to equal 45 percent shares over a 10 years period. We assume imperfect substitutability between financial assets to allow this shift to have real effects. Our simulations point towards small real effects due to the reduction in real interest rates that results from this shift in official holdings.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Empirica
WU Journalrating 2009 A
Language English
Title Global Impact of a Shift in Foreign Reserves to Euros
Volume 36
Number 1
Year 2009
Page from 101
Page to 122
Reviewed? Y
URL http://www.springerlink.com/content/t837k486140p/?p=d711f390a25944d08d63deefa73838f0&pi=0

Associations

People
Breuss, Fritz (Details)
External
in't Veld, Jan (European Commission, Belgium)
Roeger, Werner (European Commission, Belgium)
Organization
Institute for International Economics IN (Details)
Europainstitut (Badinger) (Former organization)
Research areas (Ă–STAT Classification 'Statistik Austria')
5115 European integration (Details)
5300 Economics (Details)
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