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RDP 8703: Money Demand, Own Interest Rates and Deregulation
Equation (8)
R
t
=
1
−
γ
Λ
(
π
t
−
Δ
m
¯
t
)
+
σ
ϕ
+
β
(
1
−
ψ
)
(
α
ρ
σ
+
1
−
γ
)
Λ
R
t
−
1
−
(
1
−
γ
)
(
ρ
(
1
−
β
(
1
−
ψ
)
α
)
)
Λ
y
¯
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