RDP 2007-06: The Butterfly Effect of Small Open Economies Equation (19)

Γ 0 y t = Γ 1 y t 1 + Ψ ε t + Π η t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeu4KdC0aaS baaSqaaiaaicdaaeqaaOGaamyEamaaBaaaleaacaWG0baabeaakiab g2da9iabfo5ahnaaBaaaleaacaaIXaaabeaakiaadMhadaWgaaWcba GaamiDaGGaaiab=jHiTiaaigdaaeqaaOGaey4kaSIaeuiQdKLae8xT du2aaSbaaSqaaiaadshaaeqaaOGaey4kaSIae8hOdaLaeq4TdG2aaS baaSqaaiaadshaaeqaaaaa@4C1F@