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2022 | OriginalPaper | Buchkapitel

The Dynamic Links Among Demand for International Reserves, Economic Growth and Clean Energy Consumption

verfasst von : Suat Aydın, Nildag Basak Ceylan, Ayhan Kapusuzoglu

Erschienen in: Clean Energy Investments for Zero Emission Projects

Verlag: Springer International Publishing

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Abstract

In this study, we use monetarist approach to answer the question of what determines the demand for international reserves. We show that real imports, volatility of balance of payments and import propensity are important determinants for the demand for international reserves. The negative sign we found for elasticity of average propensity to import supports that it is not a measure of openness but a proxy for adjustment cost. Additionally, significant and high value of coefficient of volatility of balance of payments shows that a rise in international capital mobility did not make volatility less important for central banks for their international reserve demand. Additionally, we discuss that level of reserves is crucial for a stable and sustainable economic growth. With the results showing that import propensity is a proxy for adjustment cost, we underline that holding optimal level of reserves is as important as sustainable energy consumption for stable growth.

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Titel: The Dynamic Links Among Demand for International Reserves, Economic Growth and Clean Energy Consumption
verfasst von: Suat Aydın
Nildag Basak Ceylan
Ayhan Kapusuzoglu
Verlag: Springer International Publishing
Buch: Clean Energy Investments for Zero Emission Projects
Print ISBN: 978-3-031-12957-5

Electronic ISBN: 978-3-031-12958-2

Copyright-Jahr: 2022
DOI: https://doi.org/10.1007/978-3-031-12958-2_5

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