Currency Risk and the Safe-haven HypothesisAtlantic Economic Journal
AbstractIt has been argued that the dollar's role as a safe currency may affect its value over and above what can be justified fundamentally. This view stresses the role of the dollar as a safe-haven currency whose demand increases during periods of uncertainty. Applying a generalized autoregressive conditional heteroskedasticity framework to data on four bilateral exchange rates versus the dollar, the results show that uncertainty strengthens the dollar.
CopyrightCopyright © 2000, International Atlantic Economic Society
PublisherKluwer Academic Publishers
Citation InformationKhosrow Doroodian and Tony Caporale. "Currency Risk and the Safe-haven Hypothesis" Atlantic Economic Journal Vol. 28 Iss. 2 (2000)
Available at: http://works.bepress.com/tony_caporale/48/