RDP 9101: The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows Equation (A1)

[\begin{array}{l} D l \\ Dc \end{array}] = \frac{1}{Σ} [\begin{matrix} φ γ & φ λ δ \\ \frac{1 - τ φ γ}{1 - τ} & \frac{δ (λ φ (1 - τ) - k)}{1 - τ} \end{matrix}] [\begin{matrix} l \\ c \end{matrix}] + \frac{1}{Σ} [\begin{matrix} φ γ λ \\ λ - k γ \frac{τ}{1 - τ} \end{matrix} \begin{matrix} 0 \\ - Σ \end{matrix}] [\begin{matrix} μ \\ r * \end{matrix}],