Large real exchange rate movements may affect the real eocnomy in a manner comparable to significant episodes of tariff changes. This paper conducts a firm level analysis of the impact of exchange rate movements on firm survival, sales and industry entry rates. Our empirical analysis exploits a...

This paper reports results from a unique two-stage experiment designed to examine the spillover effects of optimism and pessimism. In stage 1, we induce optimism or pessimism onto subjects by randomly assigning a high or low piece rate for performing a cognitive task. We find that participants...