RDP 7702: Inflation and Economic Stability in a Small Open Economy: A Systems Approach Equation

Dlog x=3.9( log  x ^ d −log x )+2.0( log  x ^ s −log x )−.49 QE log  x ^ d = x 0 +log  x w −.51 log( P x EP w ) log x ^ s = x ′ 0 +log y+.50 log( P x P ) MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@9DF7@