RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency
Equation (24)
(
a
s
+
1
+
Σ
^
a
s
+
j
)
d
Q
w
−
(
a
^
s
^
+
1
+
Σ
^
a
^
s
^
+
j
)
d
Q
e
w
^
=
(
e
c
^
h
Q
−
c
f
Q
)
d
t
+
{
a
s
+
1
Q
w
d
[
Q
p
s
+
1
]
/
Q
p
s
+
1
+
Σ
^
a
s
+
j
Q
w
d
[
Q
p
s
+
j
]
/
Q
p
s
+
j
−
a
s
^
+
1
Q
e
w
^
d
[
Q
p
1
]
/
Q
p
1
−
Σ
a
^
s
^
+
j
Q
e
w
^
d
[
Q
p
j
]
/
Q
p
j
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaadaqada qaaiaadggadaWgaaWcbaGaam4CaiabgUcaRiaaigdaaeqaaOGaey4k aSIafu4OdmLbaKaacaWGHbWaaSbaaSqaaiaadohacqGHRaWkcaWGQb aabeaaaOGaayjkaiaawMcaaiaadsgacaWGrbGaam4DaiabgkHiTmaa bmaabaGabmyyayaajaWaaSbaaSqaaiqadohagaqcaiabgUcaRiaaig daaeqaaOGaey4kaSIafu4OdmLbaKaaceWGHbGbaKaadaWgaaWcbaGa bm4CayaajaGaey4kaSIaamOAaaqabaaakiaawIcacaGLPaaacaWGKb GaamyuaiaadwgaceWG3bGbaKaacqGH9aqpcaGGOaGaamyzaiqadoga gaqcamaaBaaaleaacaWGObaabeaakiaadgfacqGHsislcaWGJbWaaS baaSqaaiaadAgaaeqaaOGaamyuaiaacMcacaWGKbGaamiDaiabgUca RiaacUhacaWGHbWaaSbaaSqaaiaadohacqGHRaWkcaaIXaaabeaaki aadgfacaWG3bGaamizaiaacUfacaWGrbGaamiCamaaBaaaleaacaWG ZbGaey4kaSIaaGymaaqabaGccaGGDbGaai4laiaadgfacaWGWbWaaS baaSqaaiaadohacqGHRaWkcaaIXaaabeaaaOqaaiabgUcaRiqbfo6a tzaajaGaamyyamaaBaaaleaacaWGZbGaey4kaSIaamOAaaqabaGcca WGrbGaam4DaiaadsgacaGGBbGaamyuaiaadchadaWgaaWcbaGaam4C aiabgUcaRiaadQgaaeqaaOGaaiyxaiaac+cacaWGrbGaamiCamaaBa aaleaacaWGZbGaey4kaSIaamOAaaqabaGccqGHsislcaWGHbWaaSba aSqaaiqadohagaqcaiabgUcaRiaaigdaaeqaaOGaamyuaiaadwgace WG3bGbaKaacaWGKbGaai4waiaadgfacaWGWbWaaSbaaSqaaiaaigda aeqaaOGaaiyxaiaac+cacaWGrbGaamiCamaaBaaaleaacaaIXaaabe aakiabgkHiTiabfo6atjqadggagaqcamaaBaaaleaaceWGZbGbaKaa cqGHRaWkcaWGQbaabeaakiaadgfacaWGLbGabm4DayaajaGaamizai aacUfacaWGrbGaamiCamaaBaaaleaacaWGQbaabeaakiaac2facaGG VaGaamyuaiaadchadaWgaaWcbaGaamOAaaqabaaaaaa@AC77@