RDP 9601: Why Does the Australian Dollar Move so Closely with the Terms of Trade? Equation (C11)

8 i t diff =3.400+1.364 π t−3 diff +0.861 π t−4 diff +0.929 π t−5 diff +0.620 π t−6 diff +0.480   8 i t−2 diff −0.712   8 i t−5 diff +0.514 ε 4,t MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@9A67@