Why are reserves so big? And who is to blame?
Uri Dadush, Bennett Stancil, 9 May 2011Between 2000 and 2009, developing countries added almost $5 trillion to their foreign-exchange reserves – a number deemed too high by many, prompting accusations of protectionism. But this column argues that developed countries are equally to blame – as well as failures in international coordination. It concludes that remedies therefore require action by both groups.Full Article: Why are reserves so big? And who is to blame?