RDP 2015-11: Unprecedented Changes in the Terms of Trade Equation (A32)

log ( R t R ) = ρ r log ( R t 1 R ) + ( 1 ρ R ) [ ϕ π log ( Π t Π ) + ϕ y log ( Y t z Y t 1 ) ] + u R , t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaaciGGSb Gaai4BaiaacEgadaqadaqaamaalaaabaGaamOuamaaBaaaleaacaWG 0baabeaaaOqaaiaadkfaaaaacaGLOaGaayzkaaGaeyypa0JaeqyWdi 3aaSbaaSqaaiaadkhaaeqaaOGaciiBaiaac+gacaGGNbWaaeWaaeaa daWcaaqaaiaadkfadaWgaaWcbaGaamiDaiabgkHiTiaaigdaaeqaaa GcbaGaamOuaaaaaiaawIcacaGLPaaaaeaacqGHRaWkdaqadaqaaiaa igdacqGHsislcqaHbpGCdaWgaaWcbaGaamOuaaqabaaakiaawIcaca GLPaaadaWadaqaaiabew9aMnaaBaaaleaacqaHapaCaeqaaOGaciiB aiaac+gacaGGNbWaaeWaaeaadaWcaaqaaiaabc6adaWgaaWcbaGaam iDaaqabaaakeaacaqGGoaaaaGaayjkaiaawMcaaiabgUcaRiabew9a MnaaBaaaleaacaWG5baabeaakiGacYgacaGGVbGaai4zamaabmaaba WaaSaaaeaacaWGzbWaaSbaaSqaaiaadshaaeqaaaGcbaGaamOEaiaa dMfadaWgaaWcbaGaamiDaiabgkHiTiaaigdaaeqaaaaaaOGaayjkai aawMcaaaGaay5waiaaw2faaiabgUcaRiaadwhadaWgaaWcbaGaamOu aiaacYcacaWG0baabeaaaaaa@7225@