RDP 8703: Money Demand, Own Interest Rates and Deregulation
Equation (8)
R
t
=
1
−
γ
Λ
(
π
t
−
Δ
m
¯
t
)
+
σ
ϕ
+
β
(
1
−
ψ
)
(
α
ρ
σ
+
1
−
γ
)
Λ
R
t
−
1
−
(
1
−
γ
)
(
ρ
(
1
−
β
(
1
−
ψ
)
α
)
)
Λ
y
¯
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqr1ngB PrgifHhDYfgasaacH8srps0lbbf9q8WrFfeuY=Hhbbf9v8qqaqFr0x c9pk0xbba9q8WqFfea0=yr0RYxir=Jbba9q8aq0=yq=He9q8qqQ8fr Fve9Fve9Ff0dmeaabaqaciGacaGaaeqabaWaaeaaeaaakqaabeqaai aabkfadaWgaaWcbaGaaeiDaaqabaGccqGH9aqpdaWcaaqaaiaaigda cqGHsislcqaHZoWzaeaacaqGBoaaamaabmaabaGaaeiWdmaaBaaale aacaqG0baabeaakiabgkHiTiaabs5adaqdaaqaaiaab2gaaaWaaSba aSqaaiaabshaaeqaaaGccaGLOaGaayzkaaGaey4kaSYaaSaaaeaacq aHdpWCcqaHvpGzcqGHRaWkcqaHYoGydaqadaqaaiaaigdacqGHsisl cqaHipqEaiaawIcacaGLPaaadaqadaqaaiabeg7aHjabeg8aYjabeo 8aZjabgUcaRiaaigdacqGHsislcqaHZoWzaiaawIcacaGLPaaaaeaa caqGBoaaaiaabkfadaWgaaWcbaGaaeiDaiabgkHiTiaaigdaaeqaaa GcbaGaeyOeI0YaaSaaaeaadaqadaqaaiaaigdacqGHsislcqaHZoWz aiaawIcacaGLPaaadaqadaqaaiabeg8aYnaabmaabaGaaGymaiabgk HiTiabek7aInaabmaabaGaaGymaiabgkHiTiabeI8a5bGaayjkaiaa wMcaaiabeg7aHbGaayjkaiaawMcaaaGaayjkaiaawMcaaaqaaiaabU 5aaaWaa0aaaeaacaqG5baaaaaaaa@79CD@