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International reserve flows of OPEC states: a monetary approach

Journal Article · · J. Energy Dev.; (United States)
OSTI ID:7209488

The modern monetary approach is used to analyze the balance-of-payments status and explore their long-term implications for selected nations in the Organization of Petroleum Exporting Countries (OPEC). The monetary approach differs from traditional projections by including incomes, interest rates, and domestic assets to give a broader view for analysis. Money supply in the OPEC states is determined by foreign reserves flowing in conjunction with budget decisions of the government. Equilibrium in the money market has been maintained in recent years by an inflow of foreign reserves to balance the sudden increases in real income due to rising oil prices. A program of rapid development and income growth will require continued reserve inflows. If development programs outpace inflow and budgetary deficits develop, these reserve inflows will slow and possibly reverse. (DCK)

Research Organization:
Univ. of Colorado, Boulder
OSTI ID:
7209488
Journal Information:
J. Energy Dev.; (United States), Journal Name: J. Energy Dev.; (United States) Vol. 2:2; ISSN JENDD
Country of Publication:
United States
Language:
English