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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Description: Full text
Provider: Federal Reserve Bank of Dallas
Part of Series: Economic Letter
Publication Date: 2018-12