---
title: Firm Default Risks and Exchange Rates
url: https://www.ml-quant.com/papers/ssrn/4886183/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4886183
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4886183
featured: 2024-07-10
citations: unknown
topic: Risk, Credit & Banking
---


# Firm Default Risks and Exchange Rates

The author integrates financial frictions from company default choices into an open-economy model to create realistic exchange rate patterns, solving the BackusSmith puzzle.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4886183
- Identifier: SSRN 4886183
- Released: 2024-07-05
- First featured: Quant Letter No. 56 (2024-07-10): https://www.ml-quant.com/issues/2024-07-10/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking

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