TY  - JOUR
AU  - Flood,Robert P.
AU  - Rose,Andrew K.
AU  - Mathieson,Donald J.
TI  - An Empirical Exploration of Exchange Rate Target-Zones
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3543
PY  - 1990
Y2  - December 1990
UR  - http://www.nber.org/papers/w3543
L1  - http://www.nber.org/papers/w3543.pdf
N1  - Author contact info:
Robert Flood
Notre Dame
E-Mail: rflood1@nd.edu

Andrew K. Rose
Haas School of Business Administration
University of California, Berkeley
Berkeley, CA 94720-1900
Tel: 510/642-6609
Fax: 510/642-4700
E-Mail: arose@haas.berkeley.edu
AB  - 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.
ER  -