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 ) ′ MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeaabqWaaa aabaGaamiwamaaBaaaleaacaWG0baabeaaaOqaaiabg2da9aqaamaa bmaabaGaeqiWda3aa0baaSqaaiaadshaaeaacaWGobaaaOGaaiilai aadMhadaWgaaWcbaGaamiDaaqabaGccaGGSaGaeqyWdi3aaSbaaSqa aiaadshaaeqaaOGaaiilaiaadMgadaWgaaWcbaGaamiDaiabgkHiTi aaigdaaeqaaOGaaiilaiabec8aWnaaDaaaleaacaWG0bGaeyOeI0Ia aGymaaqaaiaad6eaaaGccaGGSaGaamyCamaaBaaaleaacaWG0bGaey OeI0IaaGOmaaqabaGccaGGSaGaamyCamaaBaaaleaacaWG0bGaeyOe I0IaaGymaaqabaaakiaawIcacaGLPaaadaahaaWcbeqaaOGamai4gk diIcaaaeaacaWGzbWaaSbaaSqaaiaadshaaeqaaaGcbaGaeyypa0da baWaaeWaaeaacqaHapaCdaWgaaWcbaGaamiDaaqabaGccaGGSaGaeq iWda3aa0baaSqaaiaadshaaeaacaWGobaaaOGaaiilaiaadMhadaWg aaWcbaGaamiDaaqabaGccaGGSaGaamyAamaaBaaaleaacaWG0baabe aakiaacYcacaWGPbWaaSbaaSqaaiaadshaaeqaaOGaeyOeI0IaamyA amaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaaakiaawIcacaGLPa aadaahaaWcbeqaaOGamai4gkdiIcaaaeaacaWG4bWaaSbaaSqaaiaa dshaaeqaaaGcbaGaeyypa0dabaWaaeWaaeaacaWGXbWaaSbaaSqaai aadshaaeqaaOGaaiilamaaBaaaleaacaWG0baabeaakiabec8aWnaa DaaaleaadaWgaaadbaGaamiDaiabgUcaRiaaigdaaeqaaaWcbaGaam OtaaaaaOGaayjkaiaawMcaamaaCaaaleqabaGccWaGGBOmGikaaaqa aiabe27aUnaaBaaaleaacaWG0baabeaaaOqaaiabg2da9aqaamaabm aabaGaeqyTdu2aa0baaSqaaiaadshaaeaacaWGobaaaOGaaiilaiab ew7aLnaaDaaaleaacaWG0baabaGaamyEaaaakiaacYcacqaH1oqzda qhaaWcbaGaamiDaaqaaiabeg8aYbaakiaacYcacaaIWaGaaiilaiaa icdacaGGSaGaaGimaiaacYcacaaIWaaacaGLOaGaayzkaaWaaWbaaS qabeaakiadacUHYaIOaaaaaaaa@A4F4@