alt Hacker NewsNot sure if you're referring to dollars as an alternative to other forms of cash (e.g., treasuries, money market funds, etc.) or as an alternative to other currencies (e.g., Euro, Yen, etc.). If it's the latter, then I think we've seen recessions and booms where the opposite happens, depending on the balance of payments situation.
Cash/dollars with respect to 10Y Bonds, Stocks, or other instruments.
When Cash becomes king, for whatever reason, it behooves the economy to sell of all other assets and buy Cash.
The closer to cash you get (1Y high grade commercial paper, 1Y Treasury, 3M Treasury, 1 month commercial paper, money market, savings account, dollars under a mattress...), the better you deal with such circumstances.