RDP 8705: The Economics of International Policy Coordination Equation

m_{T} = \frac{1 - μ α θ + α^{2} μ}{1 + α^{2} μ} w_{T} + \frac{θ}{1 + α^{2} μ} q_{0} + \frac{μ α θ}{1 + α^{2} μ} p_{T - 1}^{c}