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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 (A5)
c
=
γ
δ
{
r
*
(
1
−
τ
)
−
π
[
(
1
−
τ
)
α
ε
λ
+
τ
(
1
−
τ
)
ε
[
γ
/
δ
+
α
λ
]
+
1
]
}
,
and
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