000			01853cam a22003137 4500
001			w0626
003			NBER
005			20211020115429.0
006			m o d
007			cr cnu||||||||
008			210910s1981 mau fo 000 0 eng d
100	1		_aFlood, Robert P.
245	1	2	_aA Model of Stochastic Process Switching / _cRobert P. Flood, Peter M. Garber.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c1981.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w0626
500			_aFebruary 1981.
520	3		_aIn this paper we develop a rational expectations exchange rate model which is capable of confronting explicitly agents' beliefs about a future switch in exogenous driving processes. In our set-up the agents know with certainty both the initial exogenous process and the new process to be adopted when the switch occurs. However, they do not know with certainty the timing of future switch as it depends on the path followed by the (stochastic) exchange rate. The model is discussed in terms of the British return to pre-war parity, in 1925. However, our results are applicable to a variety of situations where process switching depends on the motion of a key endogenous variable.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
700	1		_aGarber, Peter M.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w0626.
856	4	0	_uhttps://www.nber.org/papers/w0626
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w0626
942			_2ddc _cW-PAPER
999			_c347974 _d306536