RDP 2009-01: Currency Misalignments and Optimal Monetary Policy: A Re-examination
Equation (75)
Ψ
t
∝
−
σ
4
D
(
y
˜
t
R
)
2
−
σ
4
(
y
˜
t
W
)
2
−
(
ν
(
2
−
ν
)
4
D
)
Δ
t
2
−
ξ
4
δ
(
(
π
t
R
)
2
+
(
π
t
W
)
2
+
ν
(
2
−
ν
)
(
s
t
−
s
t
−
1
)
2
)
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