RDP 2009-01: Currency Misalignments and Optimal Monetary Policy: A Re-examination
Equation (B45)
c
t
2
+
c
t
∗
2
+
ν
(
2
−
ν
2
)
s
t
2
=
y
t
2
+
y
t
∗
2
+
ν
(
2
−
ν
2
)
(
(
1
−
ν
)
(
1
−
σ
)
D
)
2
(
y
t
−
y
t
∗
)
2
u
+
ν
(
2
−
ν
2
)
1
D
2
Δ
t
2
+
ν
(
2
−
ν
2
)
(
2
(
1
−
ν
)
(
1
−
σ
)
D
2
)
Δ
t
(
y
t
−
y
t
∗
)
+
o
(
‖
a
3
‖
)
.
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaabbeaacaWGJb Waa0baaSqaaiaadshaaeaacaaIYaaaaOGaey4kaSIaam4yamaaDaaa leaacaWG0baabaGaey4fIOIaaGOmaaaakiabgUcaRiabe27aUnaabm aabaWaaSaaaeaacaaIYaaccaGae8NeI0IaeqyVd4gabaGaaGOmaaaa aiaawIcacaGLPaaacaWGZbWaa0baaSqaaiaadshaaeaacaaIYaaaaO Gaeyypa0JaamyEamaaDaaaleaacaWG0baabaGaaGOmaaaakiabgUca RiaadMhadaqhaaWcbaGaamiDaaqaaiabgEHiQiaaikdaaaGccqGHRa WkcqaH9oGBdaqadaqaamaalaaabaGaaGOmaiab=jHiTiabe27aUbqa aiaaikdaaaaacaGLOaGaayzkaaWaaeWaaeaadaWcaaqaaiaacIcaca aIXaGae8NeI0IaeqyVd4MaaiykaiaacIcacaaIXaGae8NeI0Iaeq4W dmNaaiykaaqaaiaadseaaaaacaGLOaGaayzkaaWaaWbaaSqabeaaca aIYaaaaOWaaeWaaeaacaWG5bWaaSbaaSqaaiaadshaaeqaaOGae8Ne I0IaamyEamaaDaaaleaacaWG0baabaGaey4fIOcaaaGccaGLOaGaay zkaaWaaWbaaSqabeaacaaIYaaaaOGaamyDaaqaaiabgUcaRiabe27a UnaabmaabaWaaSaaaeaacaaIYaGae8NeI0IaeqyVd4gabaGaaGOmaa aaaiaawIcacaGLPaaadaWcaaqaaiaaigdaaeaacaWGebWaaWbaaSqa beaacaaIYaaaaaaaiiGakiab+r5aenaaDaaaleaacaWG0baabaGaaG OmaaaaaOqaaiabgUcaRiabe27aUnaabmaabaWaaSaaaeaacaaIYaGa e8NeI0IaeqyVd4gabaGaaGOmaaaaaiaawIcacaGLPaaadaqadaqaam aalaaabaGaaGOmaiaacIcacaaIXaGae8NeI0IaeqyVd4Maaiykaiaa cIcacaaIXaGae8NeI0Iaeq4WdmNaaiykaaqaaiaadseadaahaaWcbe qaaiaaikdaaaaaaaGccaGLOaGaayzkaaGae4hLdq0aaSbaaSqaaiaa dshaaeqaaOGaaiikaiaadMhadaWgaaWcbaGaamiDaaqabaGccqWFsi slcaWG5bWaa0baaSqaaiaadshaaeaacqGHxiIkaaGccaGGPaGaey4k aSIaam4BamaabmaabaWaauWaaeaacaWGHbWaaWbaaSqabeaacaaIZa aaaaGccaGLjWUaayPcSdaacaGLOaGaayzkaaGaaiOlaaaaaa@A728@