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
‖
)
.
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