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RDP 8612: A Weekly Model of the Floating Australian Dollar
Equation (12)
e
t
+
1
=
1
β
e
t
−
α
β
Z
t
−
K
0
(
Z
t
+
1
−
Z
t
t
+
1
)
+
u
t
+
1
−
(
1
β
−
R
1
)
u
t
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