Questions in reserve, Indian Express, 8 November 2011

International reserve holdings by all countries put together have risen rapidly since 2000. They did not go down during the crisis as few countries used reserves in the crisis, allowing their currencies to depreciate in response to capital outflows as they also faced declining export growth. Post-crisis, there are new reasons for central banks to build reserves. We should expect to see a rise in international reserves in the coming decade. As a consequence, despite all its debt difficulties, the US government it likely to continue see demand for its bonds rising.