RDP 2009-01: Currency Misalignments and Optimal Monetary Policy: A Re-examination
Equation (72)
Ψ
t
∝
ν
(
2
−
ν
)
σ
(
σ
−
1
)
4
D
(
y
˜
t
−
y
˜
t
*
)
2
−
(
σ
+
ϕ
2
)
(
(
y
˜
t
)
2
+
(
y
˜
t
*
)
2
)
−
(
ν
(
2
−
ν
)
4
D
)
Δ
t
2
−
ξ
2
δ
(
(
π
t
)
2
+
(
π
t
*
)
2
+
ν
(
2
−
ν
)
2
(
s
t
−
s
t
−
1
)
2
)
.
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqqHOo qwdaWgaaWcbaGaamiDaaqabaGccqGHDisTdaWcaaqaaiabe27aUnaa bmaabaGaaGOmaiabgkHiTiabe27aUbGaayjkaiaawMcaaiabeo8aZn aabmaabaGaeq4WdmNaeyOeI0IaaGymaaGaayjkaiaawMcaaaqaaiaa isdacaWGebaaamaabmaabaGabmyEayaaiaWaaSbaaSqaaiaadshaae qaaOGaeyOeI0IabmyEayaaiaWaa0baaSqaaiaadshaaeaacaGGQaaa aaGccaGLOaGaayzkaaWaaWbaaSqabeaacaaIYaaaaOGaeyOeI0Yaae WaaeaadaWcaaqaaiabeo8aZjabgUcaRiabew9aMbqaaiaaikdaaaaa caGLOaGaayzkaaWaaeWaaeaadaqadaqaaiqadMhagaacamaaBaaale aacaWG0baabeaaaOGaayjkaiaawMcaamaaCaaaleqabaGaaGOmaaaa kiabgUcaRmaabmaabaGabmyEayaaiaWaa0baaSqaaiaadshaaeaaca GGQaaaaaGccaGLOaGaayzkaaWaaWbaaSqabeaacaaIYaaaaaGccaGL OaGaayzkaaGaeyOeI0YaaeWaaeaadaWcaaqaaiabe27aUnaabmaaba GaaGOmaiabgkHiTiabe27aUbGaayjkaiaawMcaaaqaaiaaisdacaWG ebaaaaGaayjkaiaawMcaaiabfs5aenaaDaaaleaacaWG0baabaGaaG OmaaaaaOqaaiabgkHiTmaalaaabaGaeqOVdGhabaGaaGOmaiabes7a KbaadaqadaqaamaabmaabaGaeqiWda3aaSbaaSqaaiaadshaaeqaaa GccaGLOaGaayzkaaWaaWbaaSqabeaacaaIYaaaaOGaey4kaSYaaeWa aeaacqaHapaCdaqhaaWcbaGaamiDaaqaaiaacQcaaaaakiaawIcaca GLPaaadaahaaWcbeqaaiaaikdaaaGccqGHRaWkdaWcaaqaaiabe27a UnaabmaabaGaaGOmaiabgkHiTiabe27aUbGaayjkaiaawMcaaaqaai aaikdaaaWaaeWaaeaacaWGZbWaaSbaaSqaaiaadshaaeqaaOGaeyOe I0Iaam4CamaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaaakiaawI cacaGLPaaadaahaaWcbeqaaiaaikdaaaaakiaawIcacaGLPaaacaGG Uaaaaaa@9961@