An analysis of the behavior of exchange rates and bond prices around the time of international assistance

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“An analysis of the behavior of exchange rates and bond prices around the time of international assistance for countries in balance of payments difficulties suggests that on average prices decline sharply for a number of months before the announcement of the assistance and are largely stable after the announcement. This suggests that the assistance is effective but comes too late.” Does this follow?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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