Currency Risk and Relative Price Risk
揭示通货膨胀风险和汇率变动所代表的货币风险与相对价格风险之间的紧密联系，并探讨远期外汇合约、名义债务和固定价格销售合同等对冲工具的最优使用量。
This paper demonstrates the strong linkages that exist between currency risk, represented by inflation risk and exchange rate changes, and relative price risk. These linkages affect the optional quantities of forward exchange contracts, nominal debt, and fixed price sales (purchase) contracts to use in hedging against these risks. It is shown that the existence of as many hedging mechanisms as there are forms of price risk allows for the precise targeting of specific price risks with specific hedging instruments. Moreover, even though each hedging mechanism specializes in protecting against a particular form of price risk, the optimal quantitiy of each influences and is influenced by the optimal quantities of the others.