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An Empirical Exploration of Exchange Rate Target-Zones / Robert P. Flood, Andrew K. Rose, Donald J. Mathieson.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Flood, Robert P.
Contributor:
Rose, Andrew K.
Mathieson, Donald J.
National Bureau of Economic Research.
Series:
Working Paper Series (National Bureau of Economic Research) no. w3543.
NBER working paper series no. w3543
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1990.
Summary:
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.
Notes:
Print version record
December 1990.

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