Evaluating Exchange Rate Models Based on Rational Expectations versus Imperfect Knowledge Economics

Autor:	Ismail Onur Baycan
Rok vydání:	2015
Předmět:	Macroeconomics Microeconomics Rational expectations Exchange rate Accounting Field (Bourdieu) Economics Econometrics and Finance (miscellaneous) Economics Imperfect Business and International Management Empirical evidence International finance
Zdroj:	International Journal of Financial Research. 6
ISSN:	1923-4031 1923-4023
DOI:	10.5430/ijfr.v6n4p187
Popis:	Understanding the factors that explain the causes of exchange rate swings has been one of the major concerns in the international finance field. Conventional models, which utilize Rational Expectation Hypothesis (REH), are frequently tested and employed in the international finance literature to explain the exchange rate fluctuations. On the other hand, Imperfect Knowledge Economics (IKE) has recently been developed as an alternative approach to understand the same concerns on the exchange rate swings. This paper, for the first time, employs the Lakatosian framework of Scientific Research Programs (SRPs) to evaluate the main theoretical contributions of these models on the exchange rate fluctuations. First, the study evaluates the novel facts that are associated with each of the Lakatosian protective belts for both of these SRPs. In addition, the study evaluates the empirical evidence of each SRP related to these novel facts, and argues whether or not these are theoretically and empirically progressive in the Lakatosian framework.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::9389799ce85d5bbe01f9754ad753ee59 https://doi.org/10.5430/ijfr.v6n4p187 Zobrazit plný text záznamu