RDP 2010-03: Modelling Inflation in Australia Equation (A2)

θ t − 1 = θ t ( W t P t Z t ) − ϕ [ Π t Π t − 1 α ( Π t * ) 1 − α − 1 ] [ Π t Π t − 1 α ( Π t * ) 1 − α ] + β ϕ E t { ( Λ t + 1 Λ t ) [ Π t + 1 Π t α ( Π t + 1 * ) 1 − α − 1 ] [ Π t + 1 Π t α ( Π t + 1 * ) 1 − α ] ( Y t + 1 Y t ) } MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqaH4o qCdaWgaaWcbaGaamiDaaqabaGccqGHsislcaaIXaGaeyypa0JaeqiU de3aaSbaaSqaaiaadshaaeqaaOWaaeWaaeaadaWcaaqaaiaadEfada WgaaWcbaGaamiDaaqabaaakeaacaWGqbWaaSbaaSqaaiaadshaaeqa aOGaamOwamaaBaaaleaacaWG0baabeaaaaaakiaawIcacaGLPaaacq GHsislcqaHvpGzdaWadaqaamaalaaabaGaeuiOda1aaSbaaSqaaiaa dshaaeqaaaGcbaGaeuiOda1aa0baaSqaaiaadshacqGHsislcaaIXa aabaGaeqySdegaaOWaaeWaaeaacqqHGoaudaqhaaWcbaGaamiDaaqa aiaacQcaaaaakiaawIcacaGLPaaadaahaaWcbeqaaiaaigdacqGHsi slcqaHXoqyaaaaaOGaeyOeI0IaaGymaaGaay5waiaaw2faamaadmaa baWaaSaaaeaacqqHGoaudaWgaaWcbaGaamiDaaqabaaakeaacqqHGo audaqhaaWcbaGaamiDaiabgkHiTiaaigdaaeaacqaHXoqyaaGcdaqa daqaaiabfc6aqnaaDaaaleaacaWG0baabaGaaiOkaaaaaOGaayjkai aawMcaamaaCaaaleqabaGaaGymaiabgkHiTiabeg7aHbaaaaaakiaa wUfacaGLDbaaaeaacqGHRaWkcqaHYoGycqaHvpGzcaWGfbWaaSbaaS qaaiaadshaaeqaaOWaaiWaaeaadaqadaqaamaalaaabaGaeu4MdW0a aSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaaaOqaaiabfU5amnaaBa aaleaacaWG0baabeaaaaaakiaawIcacaGLPaaadaWadaqaamaalaaa baGaeuiOda1aaSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaaaOqaai abfc6aqnaaDaaaleaacaWG0baabaGaeqySdegaaOWaaeWaaeaacqqH GoaudaqhaaWcbaGaamiDaiabgUcaRiaaigdaaeaacaGGQaaaaaGcca GLOaGaayzkaaWaaWbaaSqabeaacaaIXaGaeyOeI0IaeqySdegaaaaa kiabgkHiTiaaigdaaiaawUfacaGLDbaadaWadaqaamaalaaabaGaeu iOda1aaSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaaaOqaaiabfc6a qnaaDaaaleaacaWG0baabaGaeqySdegaaOWaaeWaaeaacqqHGoauda qhaaWcbaGaamiDaiabgUcaRiaaigdaaeaacaGGQaaaaaGccaGLOaGa ayzkaaWaaWbaaSqabeaacaaIXaGaeyOeI0IaeqySdegaaaaaaOGaay 5waiaaw2faamaabmaabaWaaSaaaeaacaWGzbWaaSbaaSqaaiaadsha cqGHRaWkcaaIXaaabeaaaOqaaiaadMfadaWgaaWcbaGaamiDaaqaba aaaaGccaGLOaGaayzkaaaacaGL7bGaayzFaaaaaaa@B3B3@