Question
Suppose that individuals and firms in a nation are holding the desired proportion of their wealth in foreign bonds to begin with. Suppose that there
Suppose that individuals and firms in a nation are holding the desired proportion of their wealth in foreign bonds to begin with. Suppose that there is then a once-and-for-all decrease in the exchange rate. What is the adjustment that the simple portfolio balance model postulates?
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The Handbook Of The Economics Of Corporate Governance Volume 1
Authors: Benjamin Hermalin , Michael Weisbach
1st Edition
0444635300,0444635408
