RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency Equation (10a)

\begin{array}{l} μ_{1} \equiv r & σ_{1} d z_{1} \equiv 0 \\ μ_{2} \equiv (\hat{r} + μ_{e}) & σ_{2} d z_{2} \equiv σ_{e} d z_{e} \end{array}