RDP 9611: A Markov-Switching Model of Inflation in Australia Equation (3)

π t = π t1 +γ( π e π t1 )+ ε t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeqiWda3aaS baaSqaaiaadshaaeqaaOGaeyypa0JaeqiWda3aaSbaaSqaaiaadsha cqGHsislcaaIXaaabeaakiabgUcaRiabeo7aNnaabmaabaGaeqiWda 3aaWbaaSqabeaacaWGLbaaaOGaeyOeI0IaeqiWda3aaSbaaSqaaiaa dshacqGHsislcaaIXaaabeaaaOGaayjkaiaawMcaaiabgUcaRiabew 7aLnaaBaaaleaacaWG0baabeaaaaa@4E9B@