RDP 9601: Why Does the Australian Dollar Move so Closely with the Terms of Trade? Equation (C10)

π t diff =−0.308+0.629   8 i t−2 diff −0.293   8 i t−3 diff −0.307   8 i t−4 diff +0.125   8 i t−6 diff +0.526 ε 3,t MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@8502@