RDP 9601: Why Does the Australian Dollar Move so Closely with the Terms of Trade?
Equation (C1)
q
t
+
k
−
q
t
=
α
+
β
k
x
E
t
x
(
q
t
+
k
−
q
t
)
+
ε
t
+
k
,
t
,
x
=
A
,
B
,
k
=
1
,
…
,
8
MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeqabeWaaaqaaiaadghadaWgaaWcbaGaamiDaiabgUcaRiaadUgaaeqaaOGaeyOeI0IaamyCamaaBaaaleaacaWG0baabeaakiabg2da9iabeg7aHjabgUcaRiabek7aInaaDaaaleaacaWGRbaabaGaamiEaaaakiaadweadaqhaaWcbaGaamiDaaqaaiaadIhaaaGcdaqadaqaaiaadghadaWgaaWcbaGaamiDaiabgUcaRiaadUgaaeqaaOGaeyOeI0IaamyCamaaBaaaleaacaWG0baabeaaaOGaayjkaiaawMcaaiabgUcaRiabew7aLnaaBaaaleaacaWG0bGaey4kaSIaam4AaiaacYcacaWG0baabeaakiaacYcaaeaacaWG4bGaeyypa0JaamyqaiaacYcacaWGcbGaaiilaaqaaiaadUgacqGH9aqpcaaIXaGaaiilaiablAcilbaacaGGSaGaaGioaaaa@62A9@