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In this study, we examine the connectedness of exchange rate uncertainty and inflation. In an economy with a flexible exchange rate, price rigidities can lead importers to carry exchange rate risk and they impose a premium for the risk they face by increasing consumer prices. This pricing...
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We examine the relation between exchange rate variability and stock return volatility for U.S. multinational firms and … switch from fixed to floating exchange rates, we find a significant increase in volatility of monthly stock returns … corresponding to the period of increased exchange rate variability, even relative to the increase in stock return volatility for …
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the relation between exchange rate variability and stock return volatility and by decomposing this relation into … rates, we find a significant increase in the volatility of U.S. multinational monthly stock returns corresponding to the … period of increased exchange rate variability. This increase in stock return volatility is also significant relative to the …
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The degree of endemic volatility in the number of firms and establishments varies considerably across industries … cross-industry differences in this dimension. Theory suggests several potential factors that might explain this dispersion … of firm volatility across industries: for example, sunk capital costs, uncertainty about profits and technological change …
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