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RDP 9807: Inflation Targeting in a Small Open Economy
Equation
A
=
[
e
9
μ
e
2
+
ϕ
(
1
−
η
)
e
9
−
ϕ
η
e
3
−
γ
1
e
8
−
γ
2
e
7
θ
e
3
e
0
e
1
e
7
e
8
e
8
+
e
9
+
e
3
A
9
]
,
B
=
[
0
−
ϕ
(
1
−
η
)
0
1
0
0
0
−
1
0
]
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