In the Case Study on international reserves (pages 489493), we asserted that except in the case of

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In the Case Study on international reserves (pages 489–493), we asserted that except in the case of a reserve currency system, an attempt by all central banks simultaneously to raise their international reserve holdings through open-market sales of domestic assets could have a contractionary effect on the world economy. Explain by contrasting the case of a gold standard–type system and a reserve currency system.

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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