Foreign currency for long‐term investors
传统观点认为保守投资者应避免外汇风险，但本文论证长期投资者持有外汇可对冲国内实际利率变动带来的风险，实证支持这一效应。
Conventional wisdom holds that conservative investors should avoid exposure to foreign currency risk. Even if they hold foreign equities, they should hedge the currency exposure of these positions and hold only domestic Treasury bills. This paper argues that the conventional wisdom may be wrong for long‐term investors. Domestic bills are risky for long‐term investors, because real interest rates vary over time and bills must be rolled over at uncertain future interest rates. This risk can be hedged by holding foreign currency if the domestic currency tends to depreciate when the domestic real interest rate falls. Empirically this effect is important.