RDP 2007-06: The Butterfly Effect of Small Open Economies Equation (5)

a t = ρ a a t 1 + ε a , t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamyyamaaDa aaleaacaWG0baabaGaey4fIOcaaOGaeyypa0JaeqyWdi3aa0baaSqa aiaadggaaeaacqGHxiIkaaGccaWGHbWaa0baaSqaaiaadshaiiaacq WFsislcaaIXaaabaGaey4fIOcaaOGaey4kaSIae8xTdu2aa0baaSqa aiaadggacaGGSaGaamiDaaqaaiabgEHiQaaaaaa@48AC@