RDP 2007-06: The Butterfly Effect of Small Open Economies Equation (23)

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=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeu4KdC0aa0 baaSqaaiaaicdaaeaacqGHxiIkaaGccaWG5bWaa0baaSqaaiaadsha aeaacqGHxiIkaaGccqGH9aqpcqqHtoWrdaqhaaWcbaGaaGymaaqaai abgEHiQaaakiaadMhadaqhaaWcbaGaamiDaGGaaiab=jHiTiaaigda aeaacaGGQaaaaOGaey4kaSIaeuiQdK1aaWbaaSqabeaacaGGQaaaaO GaeqyTdu2aa0baaSqaaiaadshaaeaacqGHxiIkaaGccqGHRaWkcqWF GoaudaahaaWcbeqaaiaacQcaaaGccqaH3oaAdaqhaaWcbaGaamiDaa qaaiabgEHiQaaakiaac6caaaa@5409@