RDP 8909: Optimal Wage Indexation, Monetary Policy and the Exchange Rate Regime Equation

( ( 1/( 1+γ ) ) 2 σ 2 up and ( β 4 + β 1 β 3 ) 2 σ 2 ud , respectively. MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeqabeGaaa qaauaabeqabmaaaeaadaqadaqaamaabeaabaGaaGymaaGaayjkaaGa ai4lamaabmaabaGaaGymaiabgUcaRiaabo7aaiaawIcacaGLPaaaai aawIcacaGLPaaadaahaaWcbeqaaiaaikdaaaGccaqGdpWaaWbaaSqa beaacaaIYaaaaOWaaSbaaSqaaiaabwhacaqGWbaabeaaaOqaaiaabg gacaqGUbGaaeizaaqaamaabmaabaGaaeOSdmaaBaaaleaacaqG0aaa beaakiaadUcacaqGYoWaaSbaaSqaaiaabgdaaeqaaOGaaeOSdmaaBa aaleaacaqGZaaabeaaaOGaayjkaiaawMcaamaaCaaaleqabaGaaGOm aaaakiaabo8adaahaaWcbeqaaiaaikdaaaGcdaWgaaWcbaGaaeyDai aabsgaaeqaaOGaaiilaaaaaeaacaqGYbGaaeyzaiaabohacaqGWbGa aeyzaiaabogacaqG0bGaaeyAaiaabAhacaqGLbGaaeiBaiaabMhaca GGUaaaaaaa@60C7@