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RDP 9101: The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows
Equation (15′)
r
∞
=
(
r*+
π
)
[
1
+
ε
{
π
−
Δ
c
(
r
*
+
π
)
}
r*
(
r
*
+
π
+
ε
)
]
−
1
−
π
and
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