RDP 2010-02: Learning in an Estimated Small Open Economy Model Equation (16)

Φ t = Φ t − 1 + g ¯ R t − 1 Z t − 1 [ ( x t f ) ′ − Z t − 1 ′ Φ t − 1 ] R t = R t − 1 + g ¯ [ Z t − 1 Z t − 1 ′ − R t − 1 ] MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@7383@