RDP 2007-06: The Butterfly Effect of Small Open Economies Equation (17)

ν π , t = ρ π ν π , t 1 + ε π , t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeqyVd42aaS baaSqaaiabec8aWjaacYcacaWG0baabeaakiabg2da9iabeg8aYnaa BaaaleaacWaJasiWdahabeaakiabe27aUnaaBaaaleaacqaHapaCca GGSaGaamiDaGGaaiab=jHiTiaaigdaaeqaaOGaey4kaSIaeqyTdu2a aSbaaSqaaiabec8aWjaacYcacaWG0baabeaaaaa@4E31@