RDP 2009-01: Currency Misalignments and Optimal Monetary Policy: A Re-examination Equation (B28)

s t = σ 2 D 2 ( y t y t ) 2 + o ( a 3 ) . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaam4CamaaBa aaleaacaWG0baabeaakiabg2da9maalaaabaGaeq4Wdm3aaWbaaSqa beaacaaIYaaaaaGcbaGaamiramaaCaaaleqabaGaaGOmaaaaaaGcca GGOaGaamyEamaaDaaaleaacaWG0baabaGaey4fIOcaaGGaaOGae8Ne I0IaamyEamaaBaaaleaacaWG0baabeaakiaacMcadaahaaWcbeqaai aaikdaaaGccqGHRaWkcaWGVbWaaeWaaeaadaqbdaqaaiaadggadaah aaWcbeqaaiaaiodaaaaakiaawMa7caGLkWoaaiaawIcacaGLPaaaca GGUaaaaa@4F3D@