RDP 2000-06: Inflation Targeting and Exchange Rate Fluctuations in Australia Equation (A6)

Δre r t = α rer 0.413 ( 4.15 ) re r t1 + 0.4113 ( 2.93 ) to t t1 + 1.263 ( 7.20 ) Δto t t1 + 0.392 ( 1.76 ) ( r t1 w r t1 )+ ε t rer MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeuiLdqKaam OCaiaadwgacaWGYbWaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaeqyS de2aaSbaaSqaaiaadkhacaWGLbGaamOCaaqabaGccqGHsisldaWfqa qaaiaaicdacaGGUaGaaGinaiaaigdacaaIZaaaleaadaqadaqaaiaa isdacaGGUaGaaGymaiaaiwdaaiaawIcacaGLPaaaaeqaaOGaamOCai aadwgacaWGYbWaaSbaaSqaaiaadshacqGHsislcaaIXaaabeaakiab gUcaRmaaxababaGaaGimaiaac6cacaaI0aGaaGymaiaaigdacaaIZa aaleaadaqadaqaaiaaikdacaGGUaGaaGyoaiaaiodaaiaawIcacaGL PaaaaeqaaOGaamiDaiaad+gacaWG0bWaaSbaaSqaaiaadshacqGHsi slcaaIXaaabeaakiabgUcaRmaaxababaGaaGymaiaac6cacaaIYaGa aGOnaiaaiodaaSqaamaabmaabaGaaG4naiaac6cacaaIYaGaaGimaa GaayjkaiaawMcaaaqabaGccqqHuoarcaWG0bGaam4BaiaadshadaWg aaWcbaGaamiDaiabgkHiTiaaigdaaeqaaOGaey4kaSYaaCbeaeaaca aIWaGaaiOlaiaaiodacaaI5aGaaGOmaaWcbaWaaeWaaeaacaaIXaGa aiOlaiaaiEdacaaI2aaacaGLOaGaayzkaaaabeaakmaabmaabaGaam OCamaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHsislcaWG 3bGaamOCamaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaaakiaawI cacaGLPaaacqGHRaWkcqaH1oqzdaqhaaWcbaGaamiDaaqaaiaadkha caWGLbGaamOCaaaaaaa@8AF9@