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

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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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Document Type: Research Article

Publication date: 1998-05-01

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