RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency Equation (21b)

\begin{array}{l} {\hat{μ}}_{1} \equiv \hat{r} & {\hat{σ}}_{1} d {\hat{z}}_{1} \equiv 0 \\ {\hat{μ}}_{\hat{s} + 1} \equiv (r - μ_{e} + σ_{e}^{2}) & {\hat{σ}}_{\hat{s} + 1} d {\hat{z}}_{\hat{s} + 1} \equiv - σ_{e} d z_{e} \\ {\hat{μ}}_{\hat{s} + j} \equiv (μ_{j} - μ_{e} + σ_{e}^{2} - σ_{j e}) & {\hat{σ}}_{\hat{s} + j} d {\hat{z}}_{\hat{s} + j} \equiv σ_{j} d z_{j} - σ_{e} d z_{e} & j = 2, \dots, s \end{array}