Sovereign wealth funds (SWFs) are receiving significant attention from nations with substantial and sustained foreign reserves derived via natural resource development and/or manufacturing based export-led economies as a means of achieving intergenerational equity, government savings, and stable currency exchange rates. Based on an analysis of currency variability for representative export-led nations with and without SWFs between 1999 and 2012, the case for SWF-based currency sterilization requires further investigation. Furthermore, several nations undergoing active policy debates regarding the possible implementation of SWFs may not have current account balances suitable for accruing all perceived SWF benefits.
Comments: 4 Pages.
[v1] 2012-12-24 11:17:22
Unique-IP document downloads: 212 times
Add your own feedback and questions here:
You are equally welcome to be positive or negative about any paper but please be polite. If you are being critical you must mention at least one specific error, otherwise your comment will be deleted as unhelpful.