RDP 8612: A Weekly Model of the Floating Australian Dollar Equation (19)

∇ e t+1 = 1 β [ α 0 + α e e t−1 + α m m t − α y Y t − α m * m t * + α y * y t * ] + K m   t Fm t+1 − K y   t FY t − K m *     t Fm t+1 * + K y *     t FY t+1 * + u t+1 +(1− R 1 ) u t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqGHhi s0caqGLbWaaSbaaSqaaiaabshacqGHRaWkcaaIXaaabeaakiabg2da 9maalaaabaGaaGymaaqaaiabek7aIbaacaGGBbGaeqySde2aaSbaaS qaaiaaicdaaeqaaOGaey4kaSIaeqySde2aaSbaaSqaaiaabwgaaeqa aOGaaeyzamaaBaaaleaacaqG0bGaeyOeI0IaaGymaaqabaGccqGHRa WkcqaHXoqydaWgaaWcbaGaaeyBaaqabaGccaqGTbWaaSbaaSqaaiaa bshaaeqaaOGaeyOeI0IaeqySde2aaSbaaSqaaiaabMhaaeqaaOGaae ywamaaBaaaleaacaqG0baabeaakiabgkHiTiabeg7aHnaaDaaaleaa caqGTbaabaGaaiOkaaaakiaab2gadaqhaaWcbaGaaeiDaaqaaiaacQ caaaGccqGHRaWkcqaHXoqydaqhaaWcbaGaaeyEaaqaaiaacQcaaaGc caqG5bWaa0baaSqaaiaabshaaeaacaGGQaaaaOGaaiyxaaqaaiabgU caRiaabUeadaWgaaWcbaGaaeyBaaqabaGcdaWgaaWcbaGaaGPaVlaa ykW7caqG0baabeaakiaabAeacaqGTbWaaSbaaSqaaiaabshacqGHRa WkcaaIXaaabeaakiabgkHiTiaabUeadaWgaaWcbaGaaeyEaaqabaGc caaMc8+aaSbaaSqaaiaabshaaeqaaOGaaeOraiaabMfadaWgaaWcba GaaeiDaaqabaGccqGHsislcaqGlbWaa0baaSqaaiaab2gaaeaacaGG QaaaaOGaaGPaVlaaykW7daWgaaWcbaGaaeiDaaqabaGccaqGgbGaae yBamaaDaaaleaacaqG0bGaey4kaSIaaGymaaqaaiaacQcaaaGccqGH RaWkcaqGlbWaa0baaSqaaiaabMhaaeaacaqGQaaaaOGaaGPaVlaayk W7daWgaaWcbaGaaeiDaaqabaGccaqGgbGaaeywamaaDaaaleaacaqG 0bGaae4kaiaabgdaaeaacaqGQaaaaaGcbaGaey4kaSIaaeyDamaaBa aaleaacaqG0bGaey4kaSIaaeymaaqabaGccqGHRaWkcaGGOaGaaGym aiabgkHiTiaabkfadaWgaaWcbaGaaGymaaqabaGccaGGPaGaaeyDam aaBaaaleaacaqG0baabeaaaaaa@9E73@