Michael Mebane earned his Ph.D. in Economics in 2013 at Fordham University in New York City. He also has an M.A. in Experimental Psychology from Vanderbilt University and B.A.'s in Mathematics, Philosophy, and Psychology from Texas Tech University. The present paper is the result of his dissertation research. He is currently a risk and energy client consultant at MSCI in New York City.
This paper derives a closed-form version of a model with a trend-stationary, stochastic volatility exchange rate, using both a linear and quadratic trend.