Skip to content
RDP 9608: Modelling the Australian Exchange Rate, Long Bond Yield and Inflationary Expectations
Equation (3)
Δ
r
t
=
α
r
t
−
1
+
β
{
π
¯
10
−
E
t
(
π
)
}
+
γ
0
Ret
C
a
p
t
−
1
+
σ
Δ
r
t
−
2
+
ϕ
Δ
Ret
C
a
p
t
−
1
+
λ
0
Δ
E
t
(
π
)
+
λ
2
Δ
E
t
−
2
(
π
)
+
θ
Δ
G
D
e
f
t
+
Σ
i
=
0
1
g
t
−
i
+
ε
t
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqqHuo arcaWGYbWaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaeqySdeMaamOC amaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkcqaHYo GydaGadaqaaiqbec8aWzaaraWaaSbaaSqaaiaaigdacaaIWaaabeaa kiabgkHiTiaadweadaWgaaWcbaGaamiDaaqabaGccaWGOaGaeqiWda NaamykaaGaay5Eaiaaw2haaiabgUcaRiabeo7aNnaaBaaaleaacaaI WaaabeaakiGackfacaGGLbGaamiDaiaadoeacaWGHbGaamiCamaaBa aaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkcqaHdpWCcqqH uoarcaWGYbWaaSbaaSqaaiaadshacqGHsislcaaIYaaabeaakiabgU caRiabew9aMjabfs5aejGackfacaGGLbGaamiDaiaadoeacaWGHbGa amiCamaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkae aacqaH7oaBdaWgaaWcbaGaaGimaaqabaGccqqHuoarcaWGfbWaaSba aSqaaiaadshaaeqaaOGaamikaiabec8aWjaadMcacqGHRaWkcqaH7o aBdaWgaaWcbaGaaGOmaaqabaGccqqHuoarcaWGfbWaaSbaaSqaaiaa dshacqGHsislcaaIYaaabeaakiaadIcacqaHapaCcaWGPaGaey4kaS IaeqiUdeNaeuiLdqKaam4raiaadseacaWGLbGaamOzamaaBaaaleaa caWG0baabeaakiabgUcaRmaaqahabaGaam4zamaaBaaaleaacaWG0b GaeyOeI0IaamyAaaqabaaabaGaamyAaiabg2da9iaaicdaaeaacaaI XaaaniabggHiLdGccqGHRaWkcqaH1oqzdaWgaaWcbaGaamiDaaqaba aaaaa@9A5B@