RDP 8708: Risk Effects Versus Monetary Effects in the Determination of Short-Term Interest Rates
Equation (9)
log
p
t+k
−
log
p
t
=
Z
t
β
1
+
η
t+k
log
x
t+k
−
log
x
t
=
Z
t
β
2
+
u
t+k
log
m
t+k
−
log
m
t
=
Z
t
β
3
+
ε
t+k
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