RDP 2010-07: Monetary Policy and the Exchange Rate: Evaluation of VAR Models
Equation (7)
x
t
=
E
t
x
t
+
1
−
1
σ
α
(
r
t
−
E
t
π
h
,
t
+
1
)
+
ϕ
3
E
t
Δ
y
t
+
1
*
+
(
1
−
ρ
x
)
(
1
−
ϕ
2
)
σ
ν
x
,
t
+
1
−
ρ
x
*
σ
ϕ
3
ν
x
,
t
*
−
ϕ
4
(
1
−
ρ
a
)
a
t
MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@8AC8@