• About
  • Policies
  • What is open access
  • Library
  • Contact
Advanced search
      View Item 
      •   BUIR Home
      • University Library
      • Bilkent Theses
      • Theses - Department of Economics
      • Dept. of Economics - Master's degree
      • View Item
      •   BUIR Home
      • University Library
      • Bilkent Theses
      • Theses - Department of Economics
      • Dept. of Economics - Master's degree
      • View Item
      JavaScript is disabled for your browser. Some features of this site may not work without it.

      Effectiveness of reserve requirements on current account imbalances

      Thumbnail
      View / Download
      771.9 Kb
      Author(s)
      Dalkıran, Dilşat Tugba
      Advisor
      Böke, Selin Sayek
      Date
      2012
      Publisher
      Bilkent University
      Language
      English
      Type
      Thesis
      Item Usage Stats
      154
      views
      99
      downloads
      Abstract
      Following the recent financial crisis, reserve requirements have become a policy instrument preferred in many emerging markets such as China, Brazil and Turkey for various purposes. Therefore, the formulating a theoretical framework to study the policy effectiveness remains an important issue. In this thesis, I develop a DSGE model with the financial accelerator mechanism so as to see the effectiveness of reserve requirement in small open economies, especially in influencing the external imbalances. External imbalances can either be interpreted as current account imbalances or its mirroring capital account imbalances. The main channel through which the external balances play a role is via the banking sector, which is modelled as engaging in international borrowing. This framework allows examination of the responses of the external imbalances to shocks to the reserve requirement ratio As a result, higher reserve requirements make domestic borrowing cheaper than foreign borrowing and by this way, changes in net foreign liabilities create a current account surplus. Thus, a country with current account deficit can use reserve requirements to readjust its external imbalances.
      Keywords
      DSGE
      Financial Accelerator
      Reserve Requirements
      Current Account
      Permalink
      http://hdl.handle.net/11693/15491
      Collections
      • Dept. of Economics - Master's degree 325
      Show full item record

      Browse

      All of BUIRCommunities & CollectionsTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartmentsCoursesThis CollectionTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartmentsCourses

      My Account

      Login

      Statistics

      View Usage StatisticsView Google Analytics Statistics

      Bilkent University

      If you have trouble accessing this page and need to request an alternate format, contact the site administrator. Phone: (312) 290 2976
      © Bilkent University - Library IT

      Contact Us | Send Feedback | Off-Campus Access | Admin | Privacy