RBA Annual Conference – 2018 Equation (14)

\begin{array}{l} (\begin{matrix} π_{t} \\ π_{t}^{e} \end{matrix}) = (\begin{matrix} c_{1} \\ c_{2} \end{matrix}) + (\begin{matrix} a (L) & b (L) \\ c (L) & d (L) \end{matrix}) (\begin{matrix} π_{t - 1} \\ π_{t - 1}^{e} \end{matrix}) + (\begin{matrix} ε_{1 t} \\ ε_{2 t} \end{matrix}) \\ (\begin{matrix} ε_{1 t} \\ ε_{2 t} \end{matrix}) ~ i i d ((\begin{matrix} 0 \\ 0 \end{matrix}), (\begin{matrix} σ_{11} & σ_{21} \\ σ_{12} & σ_{22} \end{matrix})) \end{array}