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RDP 9807: Inflation Targeting in a Small Open Economy
Equation (12)
Z
t
=
M
Z
t
−
1
+
ε
t
Z
where
Z
0
=
[
I
L
1
]
X
0
and
ε
t
Z
=
[
I
L
1
]
ν
t
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaGabeaacaWGAb WaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaamytaiaadQfadaWgaaWc baGaamiDaiabgkHiTiaaigdaaeqaaOGaey4kaSIaeqyTdu2aa0baaS qaaiaadshaaeaacaWGAbaaaaGcbaqbaeqabeabaaaabaGaae4Daiaa bIgacaqGLbGaaeOCaiaabwgaaeaacaWGAbWaaSbaaSqaaiaaicdaae qaaOGaeyypa0ZaamWaaeaafaqabeGabaaabaGaamysaaqaaiaadYea daWgaaWcbaGaaGymaaqabaaaaaGccaGLBbGaayzxaaGaamiwamaaBa aaleaacaaIWaaabeaaaOqaaiaabggacaqGUbGaaeizaaqaaiabew7a LnaaDaaaleaacaWG0baabaGaamOwaaaakiabg2da9maadmaabaqbae qabiqaaaqaaiaadMeaaeaacaWGmbWaaSbaaSqaaiaaigdaaeqaaaaa aOGaay5waiaaw2faaaaacqaH9oGBdaWgaaWcbaGaamiDaaqabaaaaa a@5F02@