The primary aim of this paper is to explore the effectiveness of Hoarding International Reserves and Sterilization for dollarized and indebted countries such as Turkey and Lebanon, by measuring the sterilization coefficient, and the offset coefficient. It also focuses on exploring the link between the sources of Reserves and the external debt. Using quarterly data collected from the International Monetary Fund and from the Central Banks of Turkey and Lebanon between 1995 and 2010, we applied a 2SLS regression models and we identified explanatory variables that enabled us to estimate the aforementioned coefficients. Our results showed that despite their theoretical practice of sterilization policy, economic constrains of these countries contribute to weaken the efficacy expected from monetary policies
Liability Dollarization, and Lender of Last Resort, NBER Working Paper N°12788.
Christensen J, 2004 ; Capital Inflows, Sterilization, and Commercial Bank Speculation :
The case of the Czech Republic in the Mid-1990s, IMF, Paper N° wp/04/218
Disyatat, P. et G. Galati (2005) : « The effectiveness of foreign exchange intervention in emerging market economies », BIS Papers, n° 24, pp.97–113.
Eichengreen B, Hausmann R; 1999, Exchange Rate and Financial Fragility; NBER Working Paper N°7418.
Feige L E, 2003, Dynamic of Currency Substitution, Asset Substitution and de facto
Dollarisation and Euroisation in Transition Countries; Comparative Economic Studies, N°45, p.358-383
Jeanne O, Rancière R; 200620; The Optimal of International Reserves for Emerging Market
Countries: Formulas and Applications, IMF Working Paper, N° 06/229 Obsfeld M, Schambaugh J C, Taylor A M, 2004; Monetary Sovereignty, Exchange Rates and Capital Controls: The Trilemma in the Interwar Period, NBER Working Paper, N°10393.
Ouyang A Y, Rajan R S, 2005, Monetary Sterilization in China Since the 1990s: How
Much and How Effective? Centre of International Economic University, paper Studies, N°0507
Liability Dollarization, and Lender of Last Resort, NBER Working Paper N°12788.
Christensen J, 2004 ; Capital Inflows, Sterilization, and Commercial Bank Speculation :
The case of the Czech Republic in the Mid-1990s, IMF, Paper N° wp/04/218
Disyatat, P. et G. Galati (2005) : « The effectiveness of foreign exchange intervention in emerging market economies », BIS Papers, n° 24, pp.97–113.
Eichengreen B, Hausmann R; 1999, Exchange Rate and Financial Fragility; NBER Working Paper N°7418.
Feige L E, 2003, Dynamic of Currency Substitution, Asset Substitution and de facto
Dollarisation and Euroisation in Transition Countries; Comparative Economic Studies, N°45, p.358-383
Jeanne O, Rancière R; 200620; The Optimal of International Reserves for Emerging Market
Countries: Formulas and Applications, IMF Working Paper, N° 06/229 Obsfeld M, Schambaugh J C, Taylor A M, 2004; Monetary Sovereignty, Exchange Rates and Capital Controls: The Trilemma in the Interwar Period, NBER Working Paper, N°10393.
Ouyang A Y, Rajan R S, 2005, Monetary Sterilization in China Since the 1990s: How
Much and How Effective? Centre of International Economic University, paper Studies, N°0507
Mansour, L. (2011). INTERNATIONAL RESERVES AND STERILIZATION IN INDEBTED AND DOLLARIZED COUNTRIES: AN EFFECTIVE MONETARY POLICY?. International Journal of Economics and Finance Studies, 3(2), 169-179.
AMA
Mansour L. INTERNATIONAL RESERVES AND STERILIZATION IN INDEBTED AND DOLLARIZED COUNTRIES: AN EFFECTIVE MONETARY POLICY?. IJEFS. Aralık 2011;3(2):169-179.
Chicago
Mansour, Layal. “INTERNATIONAL RESERVES AND STERILIZATION IN INDEBTED AND DOLLARIZED COUNTRIES: AN EFFECTIVE MONETARY POLICY?”. International Journal of Economics and Finance Studies 3, sy. 2 (Aralık 2011): 169-79.
EndNote
Mansour L (01 Aralık 2011) INTERNATIONAL RESERVES AND STERILIZATION IN INDEBTED AND DOLLARIZED COUNTRIES: AN EFFECTIVE MONETARY POLICY?. International Journal of Economics and Finance Studies 3 2 169–179.
IEEE
L. Mansour, “INTERNATIONAL RESERVES AND STERILIZATION IN INDEBTED AND DOLLARIZED COUNTRIES: AN EFFECTIVE MONETARY POLICY?”, IJEFS, c. 3, sy. 2, ss. 169–179, 2011.
ISNAD
Mansour, Layal. “INTERNATIONAL RESERVES AND STERILIZATION IN INDEBTED AND DOLLARIZED COUNTRIES: AN EFFECTIVE MONETARY POLICY?”. International Journal of Economics and Finance Studies 3/2 (Aralık 2011), 169-179.
JAMA
Mansour L. INTERNATIONAL RESERVES AND STERILIZATION IN INDEBTED AND DOLLARIZED COUNTRIES: AN EFFECTIVE MONETARY POLICY?. IJEFS. 2011;3:169–179.
MLA
Mansour, Layal. “INTERNATIONAL RESERVES AND STERILIZATION IN INDEBTED AND DOLLARIZED COUNTRIES: AN EFFECTIVE MONETARY POLICY?”. International Journal of Economics and Finance Studies, c. 3, sy. 2, 2011, ss. 169-7.
Vancouver
Mansour L. INTERNATIONAL RESERVES AND STERILIZATION IN INDEBTED AND DOLLARIZED COUNTRIES: AN EFFECTIVE MONETARY POLICY?. IJEFS. 2011;3(2):169-7.