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RDP 9807: Inflation Targeting in a Small Open Economy
Equation
A
9
=
1
1
−
λ
{
e
9
−
(
λ
+
β
1
)
e
1
−
β
2
e
5
−
α
e
2
+
β
1
(
e
8
−
e
7
)
+
β
2
(
e
7
−
e
6
)
}
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