RDP 9105: Inflation in Australia: Causes, Inertia and Policy Equation (8)

π=τ m +ζ w +v =(ζ+τ) m +ζ(u+v)+vwhereτ=1andζ=0. MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqaHap aCcaqG9aGaeqiXdq3aaCbiaeaacaqGTbaaleqabaGaaeOiGaaakiab gUcaRiabeA7a6naaxacabaGaae4DaaWcbeqaaiaabkciaaGccqGHRa WkcaqG2baabaGaaeypaiaabIcacqaH2oGEcaqGRaGaeqiXdqNaaeyk amaaxacabaGaaeyBaaWcbeqaaiaabkciaaGccqGHRaWkcqaH2oGEca GGOaGaaeyDaiabgUcaRiaabAhacaGGPaGaey4kaSIaaeODaiaaykW7 caqG3bGaaeiAaiaabwgacaqGYbGaaeyzaiabes8a0jabg2da9iaaig dacaaMc8Uaaeyyaiaab6gacaqGKbGaeqOTdONaeyypa0JaaGimaiaa c6caaaaa@65F9@