RDP 2000-06: Inflation Targeting and Exchange Rate Fluctuations in Australia Equation (A1)

Δ y t = α y 0.207 ( 4.77 ) ( y t1 +0.1re r t1 0.05to t t1 1.212 ( 40.06 ) w y t1 ) + 0.371 ( 2.77 ) Δw y t + 0.022 ( 3.05 ) Δf y t1 + 0.020 ( 0.29 ) r t1 0.101 ( 1.09 ) r t2 + 0.014 ( 0.16 ) r t3 + 0.045 ( 0.09 ) r t4 0.128 ( 1.40 ) r t5 0.017 ( 0.25 ) r t6 + ε t y MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaGabeaacqqHuo arcaWG5bWaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaeqySde2aaSba aSqaaiaadMhaaeqaaOGaeyOeI0YaaCbeaeaacaaIWaGaaiOlaiaaik dacaaIWaGaaG4naaWcbaWaaeWaaeaacaaI0aGaaiOlaiaaiEdacaaI 3aaacaGLOaGaayzkaaaabeaakmaabmaabaGaamyEamaaBaaaleaaca WG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkcaaIWaGaaiOlaiaaigda caWGYbGaamyzaiaadkhadaWgaaWcbaGaamiDaiabgkHiTiaaigdaae qaaOGaeyOeI0IaaGimaiaac6cacaaIWaGaaGynaiaadshacaWGVbGa amiDamaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHsislda WfqaqaaiaaigdacaGGUaGaaGOmaiaaigdacaaIYaaaleaadaqadaqa aiaaisdacaaIWaGaaiOlaiaaicdacaaI2aaacaGLOaGaayzkaaaabe aakiaadEhacaWG5bWaaSbaaSqaaiaadshacqGHsislcaaIXaaabeaa aOGaayjkaiaawMcaaaqaaiabgUcaRmaaxababaGaaGimaiaac6caca aIZaGaaG4naiaaigdaaSqaamaabmaabaGaaGOmaiaac6cacaaI3aGa aG4naaGaayjkaiaawMcaaaqabaGccqqHuoarcaWG3bGaamyEamaaBa aaleaacaWG0baabeaakiabgUcaRmaaxababaGaaGimaiaac6cacaaI WaGaaGOmaiaaikdaaSqaamaabmaabaGaaG4maiaac6cacaaIWaGaaG ynaaGaayjkaiaawMcaaaqabaGccqqHuoarcaWGMbGaamyEamaaBaaa leaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkdaWfqaqaaiaaic dacaGGUaGaaGimaiaaikdacaaIWaaaleaadaqadaqaaiaaicdacaGG UaGaaGOmaiaaiMdaaiaawIcacaGLPaaaaeqaaOGaamOCamaaBaaale aacaWG0bGaeyOeI0IaaGymaaqabaGccqGHsisldaWfqaqaaiaaicda caGGUaGaaGymaiaaicdacaaIXaaaleaadaqadaqaaiaaigdacaGGUa GaaGimaiaaiMdaaiaawIcacaGLPaaaaeqaaOGaamOCamaaBaaaleaa caWG0bGaeyOeI0IaaGOmaaqabaaakeaacqGHRaWkdaWfqaqaaiaaic dacaGGUaGaaGimaiaaigdacaaI0aaaleaadaqadaqaaiaaicdacaGG UaGaaGymaiaaiAdaaiaawIcacaGLPaaaaeqaaOGaamOCamaaBaaale aacaWG0bGaeyOeI0IaaG4maaqabaGccqGHRaWkdaWfqaqaaiaaicda caGGUaGaaGimaiaaisdacaaI1aaaleaadaqadaqaaiaaicdacaGGUa GaaGimaiaaiMdaaiaawIcacaGLPaaaaeqaaOGaamOCamaaBaaaleaa caWG0bGaeyOeI0IaaGinaaqabaGccqGHsisldaWfqaqaaiaaicdaca GGUaGaaGymaiaaikdacaaI4aaaleaadaqadaqaaiaaigdacaGGUaGa aGinaiaaicdaaiaawIcacaGLPaaaaeqaaOGaamOCamaaBaaaleaaca WG0bGaeyOeI0IaaGynaaqabaGccqGHsisldaWfqaqaaiaaicdacaGG UaGaaGimaiaaigdacaaI3aaaleaadaqadaqaaiaaicdacaGGUaGaaG OmaiaaiwdaaiaawIcacaGLPaaaaeqaaOGaamOCamaaBaaaleaacaWG 0bGaeyOeI0IaaGOnaaqabaGccqGHRaWkcqaH1oqzdaqhaaWcbaGaam iDaaqaaiaadMhaaaaaaaa@DD4F@