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RDP 7702: Inflation and Economic Stability in a Small Open Economy: A Systems Approach
Equation
Dlog
E
=
.05
log
P
/
P
w
E
−
.02
log
R
ϕ
o
N
−
.22
log
L
θ
o
N
−
.07
log
(
M
M
o
e
λ
2
t
)
+
.11
QUS
+
.06
QER
+
.50
(
Dlog
M
−
λ
2
)
−
.12
(
D
log
R
−
λ
2
)
λ
2
=
.015
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