RDP 2007-01: A Structural Model of Australia as a Small Open Economy Equation (21)

π_{t}^{d} = μ_{f}^{d} E_{t} π_{t + 1}^{d} + μ_{b}^{d} π_{t - 1}^{d} + λ^{d} m c_{t}^{d} + ν_{t}^{π}