RDP 8607: The Expectations Theory of the Term Structure and Short-Term Interest Rates in Australia Equation (7)

r t+1 r t =α+β( R t r t )+ e t+1 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaaiOCamaaBa aaleaacaWG0bGaey4kaSIaaGymaaqabaGccqGHsislcaWGYbWaaSba aSqaaiaadshaaeqaaOGaeyypa0JaeqySdeMaey4kaSIaeqOSdi2aae WaaeaacaWGsbWaaSbaaSqaaiaadshaaeqaaOGaeyOeI0IaamOCamaa BaaaleaacaWG0baabeaaaOGaayjkaiaawMcaaiabgUcaRiaadwgada WgaaWcbaGaamiDaiabgUcaRiaaigdaaeqaaaaa@4D23@