Skip to content
RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency
Equation (18a)
dw
=
w
[
r
+
a
(
r
^
+
μ
e
+
σ
^
1
e
−
r
)
−
c
/
w
]
dt
+
w
[
σ
1
d
z
1
+
a
(
σ
e
d
z
e
+
σ
^
1
d
z
^
1
−
σ
1
d
z
1
)
]
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamizaiaadE hacqGH9aqpcaWG3bWaamWaaeaacaWGYbGaey4kaSIaamyyamaabmaa baGabmOCayaajaGaey4kaSIaeqiVd02aaSbaaSqaaiaadwgaaeqaaO Gaey4kaSIafq4WdmNbaKaadaWgaaWcbaGaaGymaiaadwgaaeqaaOGa eyOeI0IaamOCaaGaayjkaiaawMcaaiabgkHiTiaadogacaGGVaGaam 4DaaGaay5waiaaw2faaiaadsgacaWG0bGaey4kaSIaam4Damaadmaa baGaeq4Wdm3aaSbaaSqaaiaaigdaaeqaaOGaamizaiaadQhadaWgaa WcbaGaaGymaaqabaGccqGHRaWkcaWGHbWaaeWaaeaacqaHdpWCdaWg aaWcbaGaamyzaaqabaGccaWGKbGaamOEamaaBaaaleaacaWGLbaabe aakiabgUcaRiqbeo8aZzaajaWaaSbaaSqaaiaaigdaaeqaaOGaamiz aiqadQhagaqcamaaBaaaleaacaaIXaaabeaakiabgkHiTiabeo8aZn aaBaaaleaacaaIXaaabeaakiaadsgacaWG6bWaaSbaaSqaaiaaigda aeqaaaGccaGLOaGaayzkaaaacaGLBbGaayzxaaaaaa@7052@