RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency Equation

[E(t) c ^ h (t) Q ^ (t) c f (t)Q(t)]h= Σ k Σ j> s ^ [ n ^ j k (t) n ^ j k (th)]E(t) p ^ j (t) Q ^ (t) Σ k Σ j>s [ n j k (t) n j k (th)] p j (t)Q(t) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqGHsi slcaGGBbGaamyraiaacIcacaGG0bGaaiykaiqacogagaqcamaaBaaa leaacaWGObaabeaakiaacIcacaGG0bGaaiykaiqacgfagaqcaiaacI cacaGG0bGaaiykaiabgkHiTiaacogadaWgaaWcbaGaamOzaaqabaGc caGGOaGaaiiDaiaacMcacaGGrbGaaiikaiaacshacaGGPaGaaiyxai aacIgacqGH9aqpcqGHris5daWgaaWcbaGaam4AaaqabaGccqGHris5 daWgaaWcbaGaamOAaiabg6da+iqadohagaqcaaqabaGccaGGBbGabi OBayaajaWaa0baaSqaaiaadQgaaeaacaWGRbaaaOGaaiikaiaacsha caGGPaGaeyOeI0IabiOBayaajaWaa0baaSqaaiaadQgaaeaacaWGRb aaaOGaaiikaiaacshacqGHsislcaGGObGaaiykaiaac2facaGGfbGa aiikaiaacshacaGGPaGabiiCayaajaWaaSbaaSqaaiaadQgaaeqaaO GaaiikaiaacshacaGGPaGabiyuayaajaGaaiikaiaacshacaGGPaaa baGaeyOeI0IaeyyeIu+aaSbaaSqaaiaadUgaaeqaaOGaeyyeIu+aaS baaSqaaiaadQgacqGH+aGpcaWGZbaabeaakiaacUfacaGGUbWaa0ba aSqaaiaadQgaaeaacaWGRbaaaOGaaiikaiaacshacaGGPaGaeyOeI0 IaaiOBamaaDaaaleaacaWGQbaabaGaam4AaaaakiaacIcacaGG0bGa eyOeI0IaaiiAaiaacMcacaGGDbGaaiiCamaaBaaaleaacaWGQbaabe aakiaacIcacaGG0bGaaiykaiaacgfacaGGOaGaaiiDaiaacMcaaaaa @8ED1@