RDP 9807: Inflation Targeting in a Small Open Economy
Equation
X
t
=
(
π
t
N
,
y
t
,
ρ
t
,
i
t
−
1
,
π
t
−
1
N
,
q
t
−
2
,
q
t
−
1
)
′
Y
t
=
(
π
t
,
π
t
N
,
y
t
,
i
t
,
i
t
−
i
t
−
1
)
′
x
t
=
(
q
t
,
t
π
t
+
1
N
)
′
ν
t
=
(
ε
t
N
,
ε
t
y
,
ε
t
ρ
,
0
,
0
,
0
,
0
)
′
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