RDP 2009-01: Currency Misalignments and Optimal Monetary Policy: A Re-examination
Equation (B46)
c
t
+
c
t
∗
=
y
t
+
y
t
∗
−
ν
2
(
2
−
ν
2
)
(
(
1
−
ν
)
(
1
−
σ
)
D
)
2
(
y
t
−
y
t
∗
)
2
−
ν
2
(
2
−
ν
2
)
1
D
2
Δ
t
2
−
ν
2
(
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=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaWGJb WaaSbaaSqaaiaadshaaeqaaOGaey4kaSIaam4yamaaDaaaleaacaWG 0baabaGaey4fIOcaaOGaeyypa0JaamyEamaaBaaaleaacaWG0baabe aakiabgUcaRiaadMhadaqhaaWcbaGaamiDaaqaaiabgEHiQaaaiiaa kiab=jHiTmaalaaabaGaeqyVd4gabaGaaGOmaaaadaqadaqaamaala aabaGaaGOmaiab=jHiTiabe27aUbqaaiaaikdaaaaacaGLOaGaayzk aaWaaeWaaeaadaWcaaqaaiaacIcacaaIXaGae8NeI0IaeqyVd4Maai ykaiaacIcacaaIXaGae8NeI0Iaeq4WdmNaaiykaaqaaiaadseaaaaa caGLOaGaayzkaaWaaWbaaSqabeaacaaIYaaaaOWaaeWaaeaacaWG5b WaaSbaaSqaaiaadshaaeqaaOGae8NeI0IaamyEamaaDaaaleaacaWG 0baabaGaey4fIOcaaaGccaGLOaGaayzkaaWaaWbaaSqabeaacaaIYa aaaaGcbaGae8NeI0YaaSaaaeaacqaH9oGBaeaacaaIYaaaamaabmaa baWaaSaaaeaacaaIYaGae8NeI0IaeqyVd4gabaGaaGOmaaaaaiaawI cacaGLPaaadaWcaaqaaiaaigdaaeaacaWGebWaaWbaaSqabeaacaaI YaaaaaaaiiGakiab+r5aenaaDaaaleaacaWG0baabaGaaGOmaaaaki ab=jHiTmaalaaabaGaeqyVd4gabaGaaGOmaaaadaqadaqaamaalaaa baGaaGOmaiab=jHiTiabe27aUbqaaiaaikdaaaaacaGLOaGaayzkaa WaaeWaaeaadaWcaaqaaiaaikdacGaJakikaiacmciIXaGamWiG=jHi TiadmciH9oGBcGaJakykaiaacIcacaaIXaGae8NeI0Iaeq4WdmNaai ykaaqaaiaadseadaahaaWcbeqaaiaaikdaaaaaaaGccaGLOaGaayzk aaGae4hLdq0aaSbaaSqaaiaadshaaeqaaOGaaiikaiaadMhadaWgaa WcbaGaamiDaaqabaGccqWFsislcaWG5bWaa0baaSqaaiaadshaaeaa cqGHxiIkaaGccaGGPaGaey4kaSIaam4BamaabmaabaWaauWaaeaaca WGHbWaaWbaaSqabeaacaaIZaaaaaGccaGLjWUaayPcSdaacaGLOaGa ayzkaaGaaiOlaaaaaa@9FDF@