Cover -- Contents -- I. Introduction -- II. Event Study Analysis: 1980-2007 -- A. Methodology -- B. Anatomy of Shocks -- C. Macroeconomic Impact and Cost of Shocks -- D. The Role of International Reserves -- E. Robustness Analysis -- III. Global Financial Crisis: 2008-2010 -- IV. Conclusions -- V. References -- VI. Appendix -- Figures -- 1. Definition of Shock Episodes -- 2. Identifying the Cost Associated with a Shock -- 3. Macroeconomic Impact of Shocks -- 4. Costs by Type Shocks -- 5. Annual Losses and Level of Reserves -- 6. Costs of External Shocks by Variable and Type of Shock -- 7. Costs of External Shocks by Variable and Type of Shock (25th percentile) -- 8. Costs of External Shocks by Variable and Type of Shock (Whole Sample Distribution) -- 9. Macroeconomic Performance by Level of Reserves and Structural Characteristics ("Closed" Events) -- 10. Macroeconomic Impact of the Crisis -- 11. Macroeconomic Impact of the Crisis by Level of Reserves -- 12. Macroeconomic Performance by Level of Reserves and Structural Characteristics -- A.1: GDP and Consumption Costs by Type of Shock -- A.2: GDP and Consumption Costs by Type of Shock (continued) -- A.3: GDP Costs by Type of Shock and Level of Reserves -- A.4: GDP Costs by Type of Shock and Level of Reserves (continued) -- A.5: Consumption Costs by Type of Shock and Level of Reserves -- A.6: Consumption Costs by Type of Shock and Level of Reserves (continued) -- Tables -- 1. Frequency and Size of Shocks -- 2. Frequency and Size of Shocks by Region -- 3. Frequency and Size of Shocks (25th Percentile) -- 4. Frequency and Size of Shocks(Whole Sample Distribution) -- A.1: List of Variables -- A.2: List of Countries and Structural Characteristics of the Economy -- A.3: Shock Variables (1980-2007)-Summary Statistics -- A.4: Macroeconomic Variables (1980-2007)-Summary Statistics.

A.5: Macroeconomic Impact of Shocks -- A.6: Macroeconomic Impact of Shocks (continued) -- A.7: SDR Allocation -- A.8: Macroeconomic Impact of the Crisis.