Global risk and the dollar
Georgios Georgiadis, Gernot J. Müller, Ben Schumann
Working Paper Series
Global risk and the dollar
No 2628 / December 2021
Disclaimer: This paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB.
Abstract
How does global risk impact the world economy? In taking up this question, we focus on the dollar’s role in the international adjustment mechanism. First, we rely on high- frequency surprises in the price of gold to identify the effects of global risk shocks in a Bayesian Proxy VAR…
