RDP 2010-07: Monetary Policy and the Exchange Rate: Evaluation of VAR Models Equation (3)

r t * = ρ r * r t 1 * + α π * π t * + α x * x t * + ε r , t * MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamOCamaaDaaaleaacaWG0baabaGaaiOkaaaakiabg2da9iabeg8aYnaaDaaaleaacaWGYbaabaGaaiOkaaaakiaadkhadaqhaaWcbaGaamiDaiabgkHiTiaaigdaaeaacaGGQaaaaOGaey4kaSIaeqySde2aa0baaSqaaiabec8aWbqaaiaacQcaaaGccqaHapaCdaqhaaWcbaGaamiDaaqaaiaacQcaaaGccqGHRaWkcqaHXoqydaqhaaWcbaGaamiEaaqaaiaacQcaaaGccaWG4bWaa0baaSqaaiaadshaaeaacaGGQaaaaOGaey4kaSIaeqyTdu2aa0baaSqaaiaadkhacaGGSaGaamiDaaqaaiaacQcaaaaaaa@57E8@