RDP 9807: Inflation Targeting in a Small Open Economy
Equation (4)
y
t
=
μ
y
t
−
1
−
ϕ
r
t
−
1
−
γ
1
q
t
−
1
−
γ
2
q
t
−
2
+
ε
t
y
,
μ
∈
[
0
,
1
)
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