RDP 2007-06: The Butterfly Effect of Small Open Economies Equation (10)

r t = ρ r r t − 1 + α π π t + α x x t + ε r , t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamOCamaaBa aaleaacaWG0baabeaakiabg2da9iabeg8aYnaaBaaaleaacaWGYbaa beaakiaadkhadaWgaaWcbaGaamiDaGGaaiab=jHiTiaaigdaaeqaaO Gaey4kaSIaeqySde2aaSbaaSqaaiabec8aWbqabaGccqaHapaCdaWg aaWcbaGaamiDaaqabaGccqGHRaWkcqaHXoqydaWgaaWcbaGaamiEaa qabaGccaWG4bWaaSbaaSqaaiaadshaaeqaaOGaey4kaSIaeqyTdu2a aSbaaSqaaiaadkhacaGGSaGaamiDaaqabaaaaa@5275@