@techreport{NBERw3543,
 title = "An Empirical Exploration of Exchange Rate Target-Zones",
 author = "Robert P. Flood and Andrew K. Rose and Donald J. Mathieson",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "3543",
 year = "1990",
 month = "December",
 URL = "http://www.nber.org/papers/w3543",
 abstract = {In the context of a flexible-price monetary exchange rate model and the assumption of uncovered interest parity, we obtain a measure of the fundamental determinant of exchange rates. Daily data for the European Monetary System are used to explore the importance of non-linearities in the relationship between the exchange rates and fundamentals. Many implications of existing "target-zone" exchange rate models are tested; little support is found for existing non-linear models of limited exchange rate flexibility.},
}