Handbook of Asian Finance

Chapter 8

Demand for International Reserve and Monetary Disequilibrium: Evidence from Emerging Asia

Chandan Sharma^a and Sunny Kumar Singh^b,    ^aIndian Institute of Management Lucknow, Noida Campus, Noida 201307, India,    ^bIndian Institute of Management Lucknow, Lucknow 226013, India    E-mail: [e-mail]; [e-mail]

Abstract

In this study we attempt to investigate the determinants of international reserve for seven important emerging Asian countries and assess adequacy of reserves in these countries. A battery of reserves adequacy indicators shows that after the Asian crisis emerging Asian economies have accumulated sufficient reserves, which effectively brings down probability of a currency crisis in these countries. Our ...