01674cas a2200241 a 4500 AALejournalIMF000915 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451946345 1018-5941 BD-DhAAL BD-DhAAL Perraudin, W. Exchange Rate Bands with Point Process Fundamentals / W. Perraudin. Washington, D.C. : International Monetary Fund, 1990. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This note derives closed form solutions for exchange rates in terms of fundamentals within a fully credible band exchange rate regime when the fundamentals are driven by Brownian motion and multiple point processes. The inclusion of point processes allows one to relax quite substantially the distributional assumptions about exchange rates implicit in models based on Brownian motions alone, and should therefore prove of use in empirical applications. Models with discontinuous driving processes also differ from the Brownian motion model in that monetary authorities will be obliged periodically to intervene on a large scale in discrete amounts. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1990/108 Full text available on IMF http://elibrary.imf.org/view/journals/001/1990/108/001.1990.issue-108-en.xml IMF e-Library