RDP 8812: International Interest Rate Linkages and Monetary Policy: The Case of Australia
Equation (5)
R
t
=
R
t
*
+
(
E
t
p
·
-
E
t
p
*
·
)
+
θ
(
E
t
rr
-
E
t
rr
*
)
+
θ
(
E
t
s
¯
t
+
1
-
s
¯
)
+
ε
t
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