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Global slowdown: Is the dollar a good hedge?
Author(s) -
Tokic Damir
Publication year - 2008
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20443
Subject(s) - liberian dollar , depreciation (economics) , hedge , economics , safe haven , monetary economics , us dollar , cash , international economics , macroeconomics , market economy , finance , currency , ecology , capital formation , financial capital , biology , human capital
The euro has been a good hedge against the political and economic issues affecting the U.S. economy since 2001. But now, despite a weak U.S. economy, there are signs that the U.S. dollar might be a safe haven for cash and money market deposits in the future. The author discusses the reasons behind the recent depreciation of the U.S. dollar, and the fundamental changes that could strengthen the dollar in the near future. © 2008 Wiley Periodicals, Inc.