RDP 8612: A Weekly Model of the Floating Australian Dollar Equation

cov((1−L) μ t ,(1−L) μ t−j )=cov((1−L) τ t + π t ,(1−L) τ t−j + π t−j ) =2 σ t 2 + σ π 2 for j=0 − σ τ 2 for |j|=1 0 for|j|>1 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaGabeaacaqGJb Gaae4BaiaabAhacaGGOaGaaiikaiaaigdacqGHsislcaqGmbGaaiyk aiabeY7aTnaaBaaaleaacaqG0baabeaakiaacYcacaGGOaGaaGymai abgkHiTiaabYeacaGGPaGaeqiVd02aaSbaaSqaaiaabshacqGHsisl caqGQbaabeaakiaacMcacqGH9aqpcaqGJbGaae4BaiaabAhacaGGOa GaaiikaiaaigdacqGHsislcaqGmbGaaiykaiabes8a0naaBaaaleaa caqG0baabeaakiabgUcaRiabec8aWnaaBaaaleaacaqG0baabeaaki aacYcacaGGOaGaaGymaiabgkHiTiaabYeacaGGPaGaeqiXdq3aaSba aSqaaiaabshacqGHsislcaqGQbaabeaakiabgUcaRiabec8aWnaaBa aaleaacaqG0bGaeyOeI0IaaeOAaaqabaGccaGGPaaabaqbaeqabmGa aaqaaiabg2da9iaaikdacqaHdpWCdaqhaaWcbaGaaeiDaaqaaiaaik daaaGccqGHRaWkcqaHdpWCdaqhaaWcbaGaeqiWdahabaGaaGOmaaaa aOqaaiaabAgacaqGVbGaaeOCaiaaykW7caqGQbGaeyypa0JaaGimaa qaaiabgkHiTiabeo8aZnaaDaaaleaacqaHepaDaeaacaaIYaaaaaGc baGaaeOzaiaab+gacaqGYbGaaGPaVlaacYhacaGGQbGaaiiFaiabg2 da9iaaigdaaeaacaaIWaaabaGaaeOzaiaab+gacaqGYbGaaiiFaiaa cQgacaGG8bGaeyOpa4JaaGymaaaaaaaa@9154@