RDP 2008-07: A Medium-Scale Open Economy Model of Australia Equation (6)

\begin{array}{l} {\hat{R}}_{t} = ρ_{R} {\hat{R}}_{t - 1} + (1 - ρ_{R}) [{\bar{π}}_{t}^{c} + r_{π} ({\hat{\bar{π}}}_{t - 1}^{c} - {\bar{π}}_{t}^{c}) + r_{y} {\hat{y}}_{t - 1} + r_{x} {\hat{x}}_{t - 1}] \\ + r_{Δ π} Δ {\hat{π}}_{t}^{c} + r_{Δ y} Δ {\hat{y}}_{t} + ε_{R, t} \end{array}