This paper demonstrates effects of economic convergence processes on the foreign exchange behaviour in a monetary modelling approach. Since the exchange rate represents the relative price of two currencies, commonness of stochastic trends between the fundamental determinants of supply and demand...

We model a financial market with infinitely many assets as a stochastic process X with values in a separable Hilbert space H. In this setting we show the equivalence of market completeness and the uniqueness of the equivalent martingale measure, if X has continuous paths. Another result for our...