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Various authors have tried to verify the importance of different variables in the reserve demand equation. This article introduces a new independent variable, the gold price, into the reserve demand function. By pooling cross‐section and time‐series (quarterly) data for 19 industrial countries over the 1973–1981 period, a reserve demand equation is estimated. It is concluded that the price of gold exerts a significantly negative effect on the demand for international liquidity.

The purpose of this paper is to contribute to understanding modern monetary arrangements from a Marxist perspective that takes into account recent developments in the Marxist theory of world money. The paper treats the US dollar as a primus inter pares quasi-world money and challenges the argument of US hegemony by exploring the behavior of major capitalist states and selected developing countries, the BRICS, in so far as their official international reserves are concerned. The findings reveal a clear pattern in the behavior of major capitalist states in terms of the size and form of their reserves with the variations in them implying a hierarchical structure of the corresponding quasi-world moneys. The analysis focuses on developed countries and treats them individually. The merit of this approach, distinctive in the literature on international reserves, is that it reveals the above-mentioned pattern which is blurred when Japan is included. The results imply that current international monetary arrangements reflect and promote multipolarity and competition on the geopolitical scene, the evolution of which is historical.

Emerging markets are said to have sustained relatively well in the recent global crisis. There are several factors that help explain this popular view, such as, for example, perceived separation from key international financial centres. Still a lot is to be digested in the crisis aftermath with immediate implications for financial markets and real economy. This chapter offers a unique insight into dynamics within transition economies via an extended blended fiscal–monetary policy rules model with possibility of foreign reserves targeting and foreign currency-denominated debt dynamics. Calibration is based on actual data and is done under various targets and financial risk conditions. Prudent monetary policy and fiscal policy initiatives within current context drive the choice of targets. That may help dampen negative impacts of the crisis and thwart potential currency run. This chapter advances three possible post-crisis scenarios, each with unique solution for reserves, exchange rate, sustainable debt and output levels. Categorizing between net exporters and net importers based on countries' external positions, group-specific results are derived. While both groups are susceptible to exchange-rate risk affected by a multitude of shocks due to their fragile financial system, net importers risk high inflation, but net exporters over-borrowing. This chapter contributes to the literature on global financial crisis, macroeconomic policy, and role of nominal targets and foreign reserves in emerging markets.

This paper analyzes the two main divergent interpretations of Federal Reserve monetary policy in the 1920s, the expansionary view described by Rothbard (2008a [1963]) and earlier “Austrian” writers, and the contractionary view most notably held by Friedman and Schwartz (1993 [1963]) and later monetary historians. This paper argues in line with the former that the Federal Reserve engaged in expansionary monetary policy during the 1920s, as opposed to the gold sterilization view of the latter. The main rationale for this argument is that the increase in the money supply was driven by the increase in the money multiplier and total bank reserves, both of which were caused primarily by Fed policy (i.e., a decrease in reserve requirements and an increase in controlled reserves, respectively). Showing that this expansion did in fact occur provides the first step in supporting an Austrian Business Cycle Theory (ABCT) interpretation of the 1920s, namely that the Federal Reserve created a credit fueled boom that led to the Great Depression, although this is not pursued in the paper.

The purpose of this study was to conduct a comprehensive analysis of the impact and its mechanism on the transfer of agricultural labor forces in the surrounding areas resulting from the establishment of a natural reserve, which holds great significance. The significance of this analysis is on the ecological protection of the natural reserve and the coordinated development of local social economy.

This study first performs an analysis on the impact and its mechanism on the establishment of the natural reserve on the transfer of agricultural labor forces from two aspects, which are push and pull factors. Then, based on county panel data in Jiangxi Province from 1995 to 2012, this study builds a generalized difference-in-difference model and performs an empirical study on the impact, heterogeneity and its mechanism on the establishment of the natural reserve on the transfer of agricultural labor forces.

The empirical analysis reveals that the establishment of natural reserves would significantly promote the transfer of agricultural labor forces to non-agricultural sectors. The robust test and placebo test with changed estimation methods verify the robust of the result. The result passes the parallel trend test and shows that the impact is most significant within one year after the implementation of the policy. From the mechanism analysis, the impact mainly comes from the “push” effect brought by the restricted development of agricultural production and primary industry on agricultural labor forces, and the “pull” effect brought by the development of local tertiary industry.

The conclusion of this study enriches the understanding of the internal mechanism between the establishment of natural reserves and the transfer of agricultural labor forces from the push and pull factors, and can provide reference for formulating policies to promote the coordinated development of natural reserve construction and regional social economy.

Carbon storage in protected land is a practical climate stabilization strategy. It is increasingly being recognized as an essential means of safeguarding biomass carbon and improving local ecological conditions. Yet, increasing soil carbon sequestration by setting aside nature reserves does not depend only on the scale of the reserve but more so on the implementation and enforcement of the reserve protection policy. This paper aims to discuss the aforementioned issues.

The authors show how nature reserves established and managed by different administrative levels affect carbon sequestration. Empirically, the authors estimate a time-varying difference-in-difference model that exploits China's distinct four-layered hierarchical nature reserve management system at the county level.

The findings show that higher administrative level (i.e. national and provincial) nature reserves have no effects on the carbon dynamic. However, reserves managed by lower administrative levels (i.e. prefecture- and county-level) are associated with reduced carbon sequestration. The results imply local governments fail to fulfil their responsibilities for nature reserves protection, leading to increased extractive activities and declined ecological biomass.

Responsibility and accountability mechanisms for the violation of the nature reserves requirements need to be stipulated accordingly. Greater emphasis should be placed on nature reserves at the base level. The central government should continue efforts toward the establishment of ad hoc and independent management agencies at the ground-management level that are free of influence from base-level governments.

The heterogeneity in the performance of nature reserves across administrative levels confirms that ecosystem service quality is highly dependent on establishment, management and supervision. This provides a better understanding of the socio-ecological interdependence of protected areas.

The purpose of this study is to examine whether audit quality influences auditees' liquidity policy.

The author uses ordinary least squares (OLS) estimators, and we focus on a panel of US publicly traded companies (36,118 company-year observations) over the period of 2004–2019 to examine the effect of audit quality on auditees' cash reserves.

The author finds that high quality audits are negatively related to auditees' cash reserves. Additional analyses show that the potential channel by which audit quality influences these reserves is financial constraints (FC). Particularly, his results suggest that an auditee's FC serve as an intermediary in the association between audit quality and auditee's cash reserves. Ultimately, we show that high quality audits raise the market value relevance of an extra dollar in cash reserves.

By linking two distinct research lines of audit quality and corporate cash reserves, this study adds to both lines of literature, as it is a novel one (to the best of the author’s knowledge) to provide evidence about the effect of audit quality on the auditees' liquidity policy (a real economic decision and internal financial policy) that ultimately boosts the auditees' investment efficiency. The author’s findings are consistent with influential monitoring and an insurance-like function of high quality audits in reducing information asymmetry and its consequences. His results also support the argument that auditees' transparency through high quality audits can be a pivotal determinant of their liquidity policy.