RDP 9101: The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows
Equation (A5)
c
=
γ
δ
{
r
*
(
1
−
τ
)
−
π
[
(
1
−
τ
)
α
ε
λ
+
τ
(
1
−
τ
)
ε
[
γ
/
δ
+
α
λ
]
+
1
]
}
,
and
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaae4yaiaab2 dadaWcaaqaaiabeo7aNbqaaiabes7aKbaadaGadaqaaiaadkhadaah aaWcbeqaaiaacQcaaaGcdaqadaqaaiaaigdaiiaacqWFsislcqaHep aDaiaawIcacaGLPaaacqWFsislcqaHapaCdaWadaqaamaalaaabaWa aeWaaeaacaaIXaGae8NeI0IaeqiXdqhacaGLOaGaayzkaaGaeqySde MaeqyTduMaeq4UdWMaey4kaSIaeqiXdqhabaWaaeWaaeaacaaIXaGa e8NeI0IaeqiXdqhacaGLOaGaayzkaaGaeqyTdu2aamWaaeaacqaHZo WzcaGGVaGaeqiTdqMaey4kaSIaeqySdeMaeq4UdWgacaGLBbGaayzx aaGaey4kaSIaaGymaaaaaiaawUfacaGLDbaaaiaawUhacaGL9baaca GGSaGaaGPaVlaaykW7caaMc8UaaGPaVlaaykW7caqGHbGaaeOBaiaa bsgaaaa@72AF@