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RDP 7702: Inflation and Economic Stability in a Small Open Economy: A Systems Approach
Equation
Dlog
F
=
.06
(
log
f
^
−
log
F
P
)
log
f
^
=
f
0
+
log
y
+
.79
log
r
−
.79
log
r
w
−
.59
QE
+
2.5
log
EP
w
P
−
.02
QF
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