RDP 7703: Price and Quantity Responses to Monetary Impulses in a Model of a Small Open Economy
Equation
Dlog
y
=
.50
(
log
y
^
−
log
y
)
+
.07
(
log
v
^
−
log
v
)
i
^
=
[
i
0
(
EP
i
(
1
+
t
3
)
P
)
−
.41
e
.28
QE
]
S
y
^
=
[
1
−
i
0
(
EP
i
(
1
+
t
3
)
P
)
−
.41
e
.28
QE
]
S
v
^
=
v
0
S
S
=
d
+
DK
+
DK
g
+
x
+
g
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