RDP 9601: Why Does the Australian Dollar Move so Closely with the Terms of Trade? Equation (C9)

4 i t diff =2.619+1.372 π t−3 diff +0.871 π t−4 diff +0.929 π t−5 diff +0.706 π t−6 diff +0.559   4 i t−1 diff −0.502   4 i t−5 diff +0.727 ε 4,t MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@9A74@