RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency
Equation (11b)
d
w
^
=
w
^
[
r
^
+
a
^
(
r
-
μ
e
−
σ
e
2
+
r
^
)
−
c
^
/
w
^
]
d
t
+
w
^
[
−
a
^
σ
e
d
z
e
]
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