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RDP 2013-10: Stochastic Terms of Trade Volatility in Small Open Economies
Equation
1
=
β
E
t
[
(
C
t
+
1
C
t
)
−
σ
(
1
+
r
+
ψ
(
d
t
+
1
−
d
)
)
P
t
P
t
+
1
]
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