RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency
Equation (17a)
μ
1
≡
r
σ
1
d
z
1
≡
σ
1
d
z
1
μ
2
≡
(
r
^
+
μ
e
+
σ
^
1
e
)
σ
2
d
z
2
≡
σ
e
d
z
e
+
σ
^
1
d
z
^
1
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