RDP 7703: Price and Quantity Responses to Monetary Impulses in a Model of a Small Open Economy
Equation
Dlog
d
=
.55
(
log
d
^
−
log
d
)
−
.26
(
log
m
^
−
log
M
P
)
log
d
^
=
d
0
+
log
(
y
−
T
1
P
+
c
)
−
.06
log
r
log
m
^
=
m
0
+
log y
−
.18
log
r
−
.14
log
r
w
−
.01
QE
+
.10
log
EP
w
P
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