Nariman, Farhad; Heshmati, Almas - 2022
the broad dollar index. Since 2008, the broad dollar index has been used as an indicator of a bank’s risk appetite. This … the reason why the broad dollar index has become a risk (leverage) gauge since 2008 using the Covered Interest Parity (CIP …). CIP can be viewed as a reflection of the shadow price of a bank’s balance sheet, which reflects how risky the situation is …