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Economists and bankers say that China's extraordinary accumulation of foreign exchange reserves is largely accidental.
Five years after it ran out of foreign exchange reserves, Seoul has $115 billion in reserves.
Managing a peg and establishing a credible Lender of Last Resort means accumulating a large pile of foreign exchange reserves.
Those workers created over $300 million of foreign exchange reserves and the so-called "China's Miracle" at the expense of this — a waste of resources and heavy pollution.
But China's government restricts capital inflows, even as it buys up dollars and parks them abroad, adding to a $2 trillion-plus hoard of foreign exchange reserves.
A third and critical factor is the "global saving glut"—a phrase coined by Mr Bernanke in 2005 to describe some countries' massive accumulations of foreign exchange reserves.
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In addition, some developing countries built up big cushions of foreign- exchange reserves after the Asian crisis which afforded them some protection.Surprising stabilityThis economic resilience has had big political and social benefits.
It holds $2.6 trillion of foreign-exchange reserves.
They have accumulated impressive amounts of foreign-exchange reserves.
This has caused a rapid build-up of foreign-exchange reserves, creating new sorts of problems.
But China is the world's largest exporter, with $2.3 trillion of foreign-exchange reserves.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com