RDP 9807: Inflation Targeting in a Small Open Economy Equation (8)

ρ t =θ ρ t1 + ε t ρ , θ [ 0, 1 ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeqabeGaaa qaaiabeg8aYnaaBaaaleaacaWG0baabeaakiabg2da9iabeI7aXjab eg8aYnaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkcq aH1oqzdaqhaaWcbaGaamiDaaqaaiabeg8aYbaakiaacYcaaeaacqaH 4oqCcqGHiiIZdaWabaqaaiaaicdacaGGSaaacaGLBbaaaaWaaeGaae aacaaIXaaacaGLPaaaaaa@4D90@