RDP 2009-01: Currency Misalignments and Optimal Monetary Policy: A Re-examination Equation (B61)

a t + n t = ν 2 ( c H t + ν H t ) + ( 2 − ν 2 ) ( c H t ∗ + ν H t ∗ ) + 1 2 ( ν 2 ) ( 2 − ν 2 ) ( ( c H t + ν H t ) 2 + 2 ( c H t + ν H t ) ( c H t ∗ + ν H t ∗ ) + ( c H t ∗ + ν H t ∗ ) 2 ) + o ( ‖ a 3 ‖ ) . MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@9C16@