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RDP 7703: Price and Quantity Responses to Monetary Impulses in a Model of a Small Open Economy
Equation
Dlog
r
=
.05
log
r
o
r
−
.03
log
R
ϕ
o
M
+
1.2
log
L
θ
o
N
+
.14
log
(
M
M
o
e
λ
2
t
)
+
.09
QS
+
.79
(
Dlog
M
−
λ
2
)
−
.22
(
Dlog
R
−
λ
2
)
λ
2
=
.015
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