RDP 2009-01: Currency Misalignments and Optimal Monetary Policy: A Re-examination
Equation (71)
σ
D
(
y
t
−
y
t
*
−
(
y
t
−
1
−
y
t
−
1
*
)
)
−
(
ν
−
1
)
D
(
Δ
t
−
Δ
t
−
1
)
=
δ
[
(
σ
D
+
ϕ
)
(
y
˜
t
−
y
˜
t
*
)
−
(
ν
−
1
)
2
D
Δ
t
]
+
β
E
t
(
π
H
t
+
1
−
π
F
t
+
1
)
+
u
t
−
u
t
*
.
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