Stimulated Raman scattering (SRS) processes offer an attractive and efficient method for producing both essentially the entire non-thermal continuum as well as fast electrons in active galactic nuclei (AGN). In this picture, electrons are accelerated by Langmuir waves which are generated by Raman forward scattering (RFS); these electrons then rapidly radiate their energy by means of Raman back scattering (RBS) off of spatially periodic magnetic fields. Such periodic fields can be produced by magnetic modulational instabilities of the Langmuir field The emission is envisaged to arise from an expanding region, with the highest frequency radiation originating from the smallest volumes at the core of the AGN. Time variability is dominated by density fluctuations in these magnetohydrodynamic flows.