An old yet rarely explored motive of hoarding international reserves advanced by Machlup (1966) is examined. Reserve accumulation behavior in Asia is driven by a psychological desire to keep up with neighboring countries, i.e., 'keeping up with the Joneses effect'.
- Accumulation of international reserves
- Keeping up with the Joneses
- Mrs. Machlup's wardrobe
- Peer countries
- Regime dependence