An Asset-Pricing View of External Adjustment
---- Acknowledgements -----
Correspondence to: Roberto Rigobon, Sloan School of Management, MIT, 50 Memorial Drive, E52-442, Cambridge, MA 02142-1347, email@example.com. We thank Helene Rey and seminar participants at Banque de France and London Business School for stimulating discussions and Fondation Banque de France for financial support. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.