Foreign Safe Asset Demand For U.S. Treasuries And The Dollar
Speaker(s) Dr. Apoorva Javadekar, Research Director, CAFRAL Publication CAFRAL Conference room on Mezzanine Floor, Main Building. Reserve Bank of India, Fort, Mumbai 400 001

Dollar and the USA plays a special role as a safe haven investment destination. Arvind Krishnamurthy and co-authors present the evidence of this fact and a uses the extent of the failure of Covered Interest Parity (CIP) to measure the safe haven premium that investors are ready to pay to invest in the USA. Dr. Apoorva Javadekar discusses the paper and provides the comments on the paper. The discussion also illustrates the alternative theories that explain the failure of CIP