RDP 2009-01: Currency Misalignments and Optimal Monetary Policy: A Re-examination
Equation
s
t
=
θ
s
t
−
1
+
θ
δ
1
−
β
θ
ρ
[
(
a
t
−
a
t
∗
)
+
(
μ
t
−
μ
t
∗
)
]
.
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