Skip to content
RDP 1977-07: Money and the Balance of Payments
Equation (1) Real expenditure, demand for money
Dlog
d
=
α
1
(
log
d
^
−
log
d
)
+
γ
1
(
log
m
^
−
log
M
P
)
d
^
=
d
0
[
(
1
−
t
1
)
(
y
+
z
+
cb
)
]
β
1
r
b
β
2
m
^
=
m
0
(
y
+
z
)
β
1
r
b
β
3
(
r
w
+
ξ
)
β
3
MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@8ECC@