The graph is a scatterplot titled, “Foreign Reserves and Exchange Rate Sensitivity to Financial Shocks.” The chart plots mean foreign reserves to GDP ratio against the currency depreciation associated with a one percent increase in the VIX for the following countries: Brazil, Chile, Colombia, Hungary, Indonesia, Mexico, Peru, Philippines, Poland, Romania, South Africa, Thailand, Turkey, and Uruguay. The y-axis ranges from 0 to 15 percent, and the x-axis ranges 0 to 0.2 percent. Generally, a country’s mean foreign reserves to GDP ratio is negatively correlated with the currency depreciation from an increase in the VIX. For instance, while Romania’s mean foreign reserves ratio is 12.2 percent and its currency depreciation is 0.03 percent, Brazil’s reserves ratio is 7 percent and its currency depreciation is 0.15 percent. Note: The countries plotted above became inflation-targeters during the first half of the sample period, 2004Q1–19Q1. Source: Researchers' calculations using data from the IMF, World Bank, BIS, FRED, and other sources