Patro, Dilip K.; Wald, John K.; Wu, Yangru - In: Journal of International Money and Finance 40 (2014) C, pp. 79-94
We study local stock market reaction to currency devaluation by a country's central bank. Devaluations appear to be anticipated by the local stock markets, and there are significant negative abnormal returns even one year prior to the announcement of the devaluation. A negative trend in stock...