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RDP 7702: Inflation and Economic Stability in a Small Open Economy: A Systems Approach
Equation
Dlog
T
2
=
.11
(
log
T
^
21
−
T
2
)
+
.74
(
log
T
^
22
−
log
T
2
)
log
T
^
21
=
T
02
+
log
t
2
Pd
log
T
^
22
=
T
03
+
log
T
04
WL
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