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RDP 2001-04: Measuring the Real Exchange Rate: Pitfalls and Practicalities
Equation (8)
Δ
p
m
t
=
ϕ
1
+
ϕ
2
p
m
t
−
1
+
ϕ
3
p
t
−
1
∗
x
+
ϕ
4
e
t
−
1
+
∑
i
=
0
1
ϕ
5
i
Δ
p
t
∗
x
+
∑
i
=
0
1
ϕ
6
i
Δ
e
t
−
i
+
ϕ
7
D
t
1
+
ϕ
8
t
+
ν
t
MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@849C@