# RDP 8611: The Effectiveness of Fiscal Policy in an Economy with Anticipatory Wage Contracts Equation (A5)

$$\dot{w}(t)=\frac{2}{T}[\widehat{w}(t)-w(t)]+\widehat{\pi}(t)+\pi (t)-{\pi}^{*}(t)$$

$$\dot{w}(t)=\frac{2}{T}[\widehat{w}(t)-w(t)]+\widehat{\pi}(t)+\pi (t)-{\pi}^{*}(t)$$