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Influence of social learning on exchange rate policy in developing countries:a preliminary finding

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  • Yohane Khamfula

Abstract

By using a suitable econometric model, this study shows that beyond factors postulated by theorists 'social learning' is a very powerful phenomenon for guiding developing countries in their exchange rate policy. We introduce two variables that fairly encapsulate features of learning among neighbours. The new variables, together with those advanced in theory are then used to determine choice of a managed float by analysing 1993 cross-section data from Asian developing countries.

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  • Yohane Khamfula, 1998. "Influence of social learning on exchange rate policy in developing countries:a preliminary finding," Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 697-704.
  • Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:697-704
    DOI: 10.1080/000368498325688
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    Cited by:

    1. Beth Simmons & Jens Hainmueller, 2005. "Can Domestic Institutions Explain Exchange Rate Regime Choice? The Political Economy of Monetary Institutions Reconsidered," International Finance 0505011, University Library of Munich, Germany.

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