RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency Equation (26b)

0=( a ^ s ^ +1 +Σ a ^ s ^ +j )(1− a ^ s ^ +1 −Σ a ^ s ^ +j )e w ^ +(1− a s+1 − Σ ^ a s+j )( a s+1 + Σ ^ a s+j )w MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaaGimaiabg2 da9iaacIcaceWGHbGbaKaadaWgaaWcbaGabm4CayaajaGaey4kaSIa aGymaaqabaGccqGHRaWkcqqHJoWuceWGHbGbaKaadaWgaaWcbaGabm 4CayaajaGaey4kaSIaamOAaaqabaGccaGGPaGaaiikaiaaigdacqGH sislceWGHbGbaKaadaWgaaWcbaGabm4CayaajaGaey4kaSIaaGymaa qabaGccqGHsislcqqHJoWuceWGHbGbaKaadaWgaaWcbaGabm4Cayaa jaGaey4kaSIaamOAaaqabaGccaGGPaGaaiyzaiqacEhagaqcaiabgU caRiaacIcacaaIXaGaeyOeI0IaaiyyamaaBaaaleaacaWGZbGaey4k aSIaaGymaaqabaGccqGHsislcuqHJoWugaqcaiaadggadaWgaaWcba Gaam4CaiabgUcaRiaadQgaaeqaaOGaaiykaiaacIcacaGGHbWaaSba aSqaaiaadohacqGHRaWkcaaIXaaabeaakiabgUcaRiqbggHiLBaaja GaamyyamaaBaaaleaacaWGZbGaey4kaSIaamOAaaqabaGccaGGPaGa am4Daaaa@6D00@