Reserves shifting from deposits to securities – paper
Pattern may be evidence of ‘mercantilist’ motivation for excess reserve accumulation
Central banks in recent decades have increased the share of their reserves held as securities, potentially reflecting “mercantilist” motivations for holding excess reserves, new research finds.
The discussion paper, published on May 14 by the Centre for Economic Policy Research, uses central bank annual reports to assemble data on reserve holdings for 109 countries from 1950 to 2022.
The authors – Antonin Chenard, Barry Eichengreen, Eric Monnet and Florian Morvillier – show that central banks
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