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RDP 9001: Is Pitchford Right? Current Account Adjustment, Exchange Rate Dynamics and Macroeconomic Policy
Equation (18)
q
t
=
[
1
/
(
v
+
u
σ
γ
)
]
[
−
u
γ
(
A
−
σ
q
^
)
+
(
u
γ
+
r
)
a
t
+
(
1
−
γ
)
v
q
t
−
1
+
(
1
−
γ
)
r
a
t
−
1
+
v
γ
x
+
v
γ
y
]
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