01971cas a2200253 a 4500 AALejournalIMF017828 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484311424 1018-5941 BD-DhAAL BD-DhAAL Csonto, Balazs. Uphill Capital Flows and the International Monetary System / Balazs Csonto, Camilo Tovar Mora. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Uphill capital flows constitute a key transmission channel through which reserve accumulation can distort the stability of the international monetary system. This paper examines and quantifies the importance of this transmission channel by examining how foreign official purchases of U.S. Treasuries influences the U.S. yield curve at different maturities. Our findings suggest that a percentage point increase in foreign official holdings relative to outstanding marketable securities reduces the term premium by 2.0-2.4 basis points at maturities of 2-3 years. These estimates are then used to gauge the role of a global policy in reducing excess reserve accumulation?e.g., a composite global reserve asset or through global liquidity facilities. Findings show that a policy that reduces the demand for Treasuries by USD 100 billion would increase yields by 1.5-1.8 basis points. Mode of access: Internet Tovar Mora, Camilo. IMF Working Papers; Working Paper ; No. 2017/174 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/174/001.2017.issue-174-en.xml IMF e-Library