RDP 2014-02: Fiscal Policy and the Inflation Target
Equation (B2)
D
(
L
O
G
(
E
G
F
O
B
A
S
E
)
)
=
−
.0026
−
.17
*
L
O
G
(
E
G
F
O
B
A
S
E
(
−
1
)
/
E
G
F
O
T
(
−
1
)
)
−
.24
*
D
(
L
O
G
(
E
G
F
O
B
A
S
E
(
−
1
)
)
)
−
.11
*
D
(
L
O
G
(
E
G
F
O
B
A
S
E
(
−
2
)
)
)
+
1.78
*
D
(
L
O
G
(
E
G
F
O
T
)
)
−
.00039
*
G
D
P
G
A
P
(
−
1
)
+
.0012
*
G
D
P
G
A
P
(
−
2
)
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