Gong, Qiang; Jia, Shen; Lin, Justin Yifu - In: Annals of Economics and Finance 10 (2009) 1, pp. 1-14
This paper studies the causes, mechanisms and consequences of decreasing firm value and welfare loss in an economy under a fixed exchange rate regime when there is an unexpected appreciation in domestic currency. We also study the possible economic crisis caused by the exchange rate shock. We...
