Skip to content
RDP 9608: Modelling the Australian Exchange Rate, Long Bond Yield and Inflationary Expectations
Equation (7)
Δ
i
t
=
α
i
t
−
1
+
β
[
E
P
F
t
(
π
t
+
4
)
]
t
−
1
+
γ
0
R
e
t
C
a
p
t
−
1
+
γ
1
r
t
−
1
*
+
Σ
i
=
0
2
θ
0
i
Δ
r
t
−
i
+
θ
1
Δ
[
E
P
F
t
(
π
t
+
4
)
]
−
1
+
θ
2
g
t
−
3
+
ε
t
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqqHuo arcaWGPbWaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaeqySdeMaamyA amaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkcqaHYo GydaWadaqaaiaadweadaWgaaWcbaGaamiuaiaadAeadaWgaaadbaGa amiDaaqabaaaleqaaOWaaeWaaeaacqaHapaCdaWgaaWcbaGaamiDai abgUcaRiaaisdaaeqaaaGccaGLOaGaayzkaaaacaGLBbGaayzxaaWa aSbaaSqaaiaadshacqGHsislcaaIXaaabeaakiabgUcaRiabeo7aNn aaBaaaleaacaaIWaaabeaakiaadkfacaWGLbGaamiDaiaadoeacaWG HbGaamiCamaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRa WkcqaHZoWzdaWgaaWcbaGaaGymaaqabaGccaWGYbWaa0baaSqaaiaa dshacqGHsislcaaIXaaabaGaaiOkaaaakiabgUcaRaqaamaaqahaba GaeqiUde3aaSbaaSqaaiaaicdadaWgaaadbaGaamyAaaqabaaaleqa aOGaeuiLdqKaamOCamaaBaaaleaacaWG0bGaeyOeI0IaamyAaaqaba GccqGHRaWkcqaH4oqCdaWgaaWcbaGaaGymaaqabaGccqqHuoardaWa daqaaiaadweadaWgaaWcbaGaamiuaiaadAeadaWgaaadbaGaamiDaa qabaaaleqaaOWaaeWaaeaacqaHapaCdaWgaaWcbaGaamiDaiabgUca RiaaisdaaeqaaaGccaGLOaGaayzkaaaacaGLBbGaayzxaaWaaSbaaS qaaiabgkHiTiaaigdaaeqaaaqaaiaadMgacqGH9aqpcaaIWaaabaGa aGOmaaqdcqGHris5aOGaey4kaSIaeqiUde3aaSbaaSqaaiaaikdaae qaaOGaam4zamaaBaaaleaacaWG0bGaeyOeI0IaaG4maaqabaGccqGH RaWkcqaH1oqzdaWgaaWcbaGaamiDaaqabaaaaaa@9218@