{"id":"https://openalex.org/W2005178763","doi":"https://doi.org/10.3386/w2947","title":"Equilibrium Exchange Rate Hedging","display_name":"Equilibrium Exchange Rate Hedging","publication_year":1989,"publication_date":"1989-04-01","ids":{"openalex":"https://openalex.org/W2005178763","doi":"https://doi.org/10.3386/w2947","mag":"2005178763"},"language":"en","primary_location":{"id":"doi:10.3386/w2947","doi":"https://doi.org/10.3386/w2947","is_oa":true,"landing_page_url":"https://doi.org/10.3386/w2947","pdf_url":"https://doi.org/10.3386/w2947","source":{"id":"https://openalex.org/S2809516038","display_name":"National Bureau of Economic Research","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":null,"host_organization_name":null,"host_organization_lineage":["https://openalex.org/P4322614461"],"host_organization_lineage_names":["National Bureau of Economic Research"],"type":"repository"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"National Bureau of Economic Research","raw_type":"report"},"volume":null,"type":"report","indexed_in":["crossref"],"open_access":{"is_oa":true,"oa_status":"green","oa_url":"https://doi.org/10.3386/w2947","any_repository_has_fulltext":true},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5027078567","display_name":"Fischer Black","orcid":null,"observed_orcids":[]},"institutions":[{"id":"https://openalex.org/I40713646","display_name":"Goldman Sachs (United States)","ror":"https://ror.org/031rnv444","country_code":"US","type":"company","lineage":["https://openalex.org/I40713646"]}],"countries":["US"],"is_corresponding":true,"raw_author_name":"Fischer Black","raw_affiliation_strings":["Sachs & Co. 85 Broad Street , 29th Floor New York , NY 10004","Goldman, Sachs & Co. 85 Broad Street, 29th Floor New York, NY 10004","UNIVERSAL HEDGING FORMULA"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Sachs & Co. 85 Broad Street , 29th Floor New York , NY 10004","institution_ids":["https://openalex.org/I40713646"]},{"raw_affiliation_string":"Goldman, Sachs & Co. 85 Broad Street, 29th Floor New York, NY 10004","institution_ids":["https://openalex.org/I40713646"]},{"raw_affiliation_string":"UNIVERSAL HEDGING FORMULA","institution_ids":[]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":1,"corresponding_author_ids":["https://openalex.org/A5027078567"],"corresponding_institution_ids":["https://openalex.org/I40713646"],"apc_list":null,"apc_paid":null,"fwci":null,"has_fulltext":true,"cited_by_count":26,"citation_normalized_percentile":null,"cited_by_percentile_year":null,"biblio":{"volume":null,"issue":null,"first_page":null,"last_page":null},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10047","display_name":"Financial Markets and Investment Strategies","score":0.6133000254631042,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10047","display_name":"Financial Markets and Investment Strategies","score":0.6133000254631042,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10503","display_name":"Global Financial Crisis and Policies","score":0.18379999697208405,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12137","display_name":"Economic theories and models","score":0.06930000334978104,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/equilibrium-exchange-rate","display_name":"equilibrium exchange rate","score":0.8820000290870667},{"id":"https://openalex.org/keywords/currency-hedging","display_name":"currency hedging","score":0.7789999842643738},{"id":"https://openalex.org/keywords/foreign-investment","display_name":"foreign investment","score":0.7730000019073486},{"id":"https://openalex.org/keywords/risk-tolerance","display_name":"risk tolerance","score":0.8379999995231628},{"id":"https://openalex.org/keywords/risk-premium","display_name":"risk premium","score":0.7710000276565552},{"id":"https://openalex.org/keywords/exchange-rate-volatility","display_name":"exchange rate volatility","score":0.9079999923706055},{"id":"https://openalex.org/keywords/jensen-s-inequality","display_name":"Jensen's inequality","score":0.8730000257492065},{"id":"https://openalex.org/keywords/foreign-exchange-risk","display_name":"exchange rate risk","score":0.5270000100135803},{"id":"https://openalex.org/keywords/portfolio-optimization","display_name":"portfolio optimization","score":0.41999998688697815},{"id":"https://openalex.org/keywords/single-period-model","display_name":"one-period model","score":0.47600001096725464}],"concepts":[{"id":"https://openalex.org/C2776988154","wikidata":"https://www.wikidata.org/wiki/Q66100","display_name":"Exchange rate","level":2,"score":0.5934348702430725},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.47828349471092224},{"id":"https://openalex.org/C149782125","wikidata":"https://www.wikidata.org/wiki/Q160039","display_name":"Econometrics","level":1,"score":0.3938138484954834},{"id":"https://openalex.org/C106159729","wikidata":"https://www.wikidata.org/wiki/Q2294553","display_name":"Financial economics","level":1,"score":0.35684141516685486},{"id":"https://openalex.org/C556758197","wikidata":"https://www.wikidata.org/wiki/Q580018","display_name":"Monetary economics","level":1,"score":0.35284698009490967},{"id":"https://openalex.org/C144237770","wikidata":"https://www.wikidata.org/wiki/Q747534","display_name":"Mathematical economics","level":1,"score":0.3426613211631775}],"mesh":[],"locations_count":4,"locations":[{"id":"doi:10.3386/w2947","doi":"https://doi.org/10.3386/w2947","is_oa":true,"landing_page_url":"https://doi.org/10.3386/w2947","pdf_url":"https://doi.org/10.3386/w2947","source":{"id":"https://openalex.org/S2809516038","display_name":"National Bureau of Economic Research","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":null,"host_organization_name":null,"host_organization_lineage":["https://openalex.org/P4322614461"],"host_organization_lineage_names":["National Bureau of Economic Research"],"type":"repository"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"National Bureau of Economic Research","raw_type":"report"},{"id":"pmh:oai:RePEc:nbr:nberwo:2947","doi":null,"is_oa":true,"landing_page_url":"http://www.nber.org/papers/w2947.pdf","pdf_url":"http://www.nber.org/papers/w2947.pdf","source":{"id":"https://openalex.org/S4306401271","display_name":"RePEc: Research Papers in Economics","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I77793887","host_organization_name":"Federal Reserve Bank of St. Louis","host_organization_lineage":["https://openalex.org/I77793887"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"preprint"},{"id":"pmh:oai:CiteSeerX.psu:10.1.1.1010.1344","doi":null,"is_oa":false,"landing_page_url":"http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.1010.1344","pdf_url":null,"source":null,"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":"http://www.nber.org/papers/w2947.pdf","raw_type":"text"},{"id":"pmh:oai:RePEc:bla:jfinan:v:45:y:1990:i:3:p:899-907","doi":null,"is_oa":false,"landing_page_url":"http://links.jstor.org/sici?sici=0022-1082%28199007%2945%3A3%3C899%3AEERH%3E2.0.CO%3B2-W&origin=repec","pdf_url":null,"source":{"id":"https://openalex.org/S4306401271","display_name":"RePEc: Research Papers in Economics","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I77793887","host_organization_name":"Federal Reserve Bank of St. Louis","host_organization_lineage":["https://openalex.org/I77793887"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"article"}],"best_oa_location":{"id":"doi:10.3386/w2947","doi":"https://doi.org/10.3386/w2947","is_oa":true,"landing_page_url":"https://doi.org/10.3386/w2947","pdf_url":"https://doi.org/10.3386/w2947","source":{"id":"https://openalex.org/S2809516038","display_name":"National Bureau of Economic Research","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":null,"host_organization_name":null,"host_organization_lineage":["https://openalex.org/P4322614461"],"host_organization_lineage_names":["National Bureau of Economic Research"],"type":"repository"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"National Bureau of Economic Research","raw_type":"report"},"sustainable_development_goals":[],"sustainable_development_goals_aurora":[],"study_designs":[],"awards":[],"funders":[],"has_content":{"pdf":true,"grobid_xml":true},"content_urls":{"pdf":"https://content.openalex.org/works/W2005178763.pdf","grobid_xml":"https://content.openalex.org/works/W2005178763.grobid-xml"},"referenced_works_count":25,"referenced_works":["https://openalex.org/W1500774895","https://openalex.org/W1538895470","https://openalex.org/W1968932853","https://openalex.org/W1971563347","https://openalex.org/W1987928556","https://openalex.org/W1993014124","https://openalex.org/W1997677640","https://openalex.org/W2010551128","https://openalex.org/W2012226613","https://openalex.org/W2019329872","https://openalex.org/W2051241279","https://openalex.org/W2069138714","https://openalex.org/W2073234022","https://openalex.org/W2073740083","https://openalex.org/W2076438649","https://openalex.org/W2082330181","https://openalex.org/W2095102090","https://openalex.org/W2119791950","https://openalex.org/W2157374408","https://openalex.org/W2160861654","https://openalex.org/W2169225589","https://openalex.org/W2570834760","https://openalex.org/W2889732687","https://openalex.org/W2891575359","https://openalex.org/W3121195966"],"related_works":["https://openalex.org/W1903219595","https://openalex.org/W2154214328","https://openalex.org/W3123995217","https://openalex.org/W2403300051","https://openalex.org/W3125849386","https://openalex.org/W3087540584","https://openalex.org/W2061273122","https://openalex.org/W4619585","https://openalex.org/W3121622672","https://openalex.org/W2047260288"],"abstract_inverted_index":{"In":[0],"a":[1,8,22,177,185],"one-period":[2],"model":[3],"where":[4,12,109],"each":[5,29],"investor":[6,30],"consumes":[7],"single":[9],"good,":[10],"and":[11,14,18,102],"borrowing":[13],"lending":[15],"are":[16,57],"private":[17],"real,":[19],"there":[20],"is":[21],"universal":[23],"constant":[24,35,45,84,117,137],"that":[25,82],"tells":[26],"how":[27],"much":[28],"hedges":[31],"his":[32],"foreign":[33,50],"investments.The":[34],"depends":[36],"only":[37],"on":[38],"average":[39,90,97,104],"risk":[40,94,133,169,183],"tolerance":[41],"across":[42],"investors.The":[43,116],"same":[44],"applies":[46],"to":[47,88,122,141,154,184],"every":[48,54],"real":[49],"investment":[51],"held":[52],"by":[53],"investor.Foreign":[55],"investors":[56,162,175],"those":[58,65],"with":[59,179,188],"different":[60,69],"consumption":[61],"goods,":[62],"not":[63,119],"necessarily":[64],"who":[66],"live":[67],"in":[68,170],"countries.In":[70],"equilibrium,":[71],"the":[72,75,83,112,128,136,144,147,150],"price":[73],"of":[74,91,98,105,146,149,166],"world":[76,92,99,151,178,187],"market":[77,93,100,152],"portfolio":[78],"will":[79,85,118,138],"adjust":[80],"so":[81],"be":[86,120,139],"related":[87,121],"an":[89,96,103],"premia,":[95],"volatilities,":[101,108],"exchange":[106,123,132,167,181,190],"rate":[107,124,168,182,191],"we":[110],"take":[111],"averages":[113],"over":[114],"all":[115],"means":[125],"or":[126,158],"covariances.In":[127],"limiting":[129],"case":[130],"when":[131],"approaches":[134],"zero,":[135],"equal":[140],"one":[142],"minus":[143],"ratio":[145],"variance":[148],"return":[153],"its":[155],"mean.Jensen's":[156],"inequality,":[157],"\"Siegel's":[159],"paradox,\"":[160],"makes":[161,174],"want":[163],"significant":[164],"amounts":[165],"their":[171],"portfolios.It":[172],"also":[173],"prefer":[176],"more":[180],"similar":[186],"less":[189],"risk.":[192]},"counts_by_year":[{"year":2023,"cited_by_count":1},{"year":2018,"cited_by_count":1},{"year":2015,"cited_by_count":3},{"year":2013,"cited_by_count":2}],"updated_date":"2026-10-16T09:59:22.235173","created_date":"2016-06-24T00:00:00"}
