{'fraction_non_alphanumeric': 0.017733990147783252, 'fraction_numerical': 0.007881773399014778, 'mean_word_length': 5.728476821192053, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
The International Reserves Glut: Is it for Real?

Monthly data from January 1985 to December 2004 are used to investigate reserves management in ten Asiatic and Latin American countries. Idiosyncratic explanatory variables enter cointegration relationships based on a stochastic buffer stock model, where a reserve variability measure is obtained via conditional variance approaches. International factors influence the cointegration residuals (representing the excess demands for reserves), which tend to co-move within and across geographical areas. Principal components analysis is implemented then to associate their common drivers with the US fed fund effective interest rate and real effective exchange rate. This two-step approach sheds light on some controversial aspects of reserves and exchange rate management in emerging markets such as “fear of floating” and mercantilist behavior. Our results suggest, contrary to common belief, that the size of recent excess reserves holdings is probably overstated.