RDP 9807: Inflation Targeting in a Small Open Economy
Equation (9)
L
t
=
E
t
Σ
j
=
0
∞
δ
j
[
μ
π
π
t
2
+
μ
N
π
t
N
2
+
μ
y
y
t
2
+
μ
i
i
t
2
+
μ
Δ
i
(
i
t
−
i
t
−
1
)
2
]
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