Ryoo, Heajin; Dekle, Robert - Econometric Society - 2004
An important puzzle in international macroeconomics is the exchange rate disconnect puzzle. Based on recent empirical … literature by Mussa (1986), Baxter and Stockman (1989), and Flood and Rose (1995), high exchange rate volatility under floating … the exchange rate disconnect puzzle using Japanese firm level data from 1982 to 1997, for 105 firms in the 14 largest …