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Many currencies, especially those of countries with negative net foreign assets, tend to depreciate during times of financial turbulence. Using a panel of 26 currencies over the period 1/1997 - 6/2016, I show that the composition of net foreign assets matter for the exchange rate sensitivity to...
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the weight of U.S. liabilities in the rest of the world''s stock of external assets. Finally, it relates the empirical …
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