RDP 8703: Money Demand, Own Interest Rates and Deregulation
Equation (8a)
R
t
=
1
−
γ
σ
(
ϕ
+
ρ
)
(
π
t
−
Δ
m
¯
)
+
σ
ϕ
−
β
(
1
−
ψ
)
(
1
−
γ
−
α
ρ
σ
)
σ
(
ϕ
+
ρ
)
R
t
−
1
+
β
(
1
−
ψ
)
(
1
−
γ
)
σ
(
ϕ
+
ρ
)
R
t
−
2
−
(
1
−
γ
)
ρ
(
1
−
β
(
1
−
ψ
)
α
)
σ
(
ϕ
+
ρ
)
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqr1ngB PrgifHhDYfgasaacH8srps0lbbf9q8WrFfeuY=Hhbbf9v8qqaqFr0x c9pk0xbba9q8WqFfea0=yr0RYxir=Jbba9q8aq0=yq=He9q8qqQ8fr Fve9Fve9Ff0dmeaabaqaciGacaGaaeqabaWaaeaaeaaakqaabeqaai aabkfadaWgaaWcbaGaaeiDaaqabaGccqGH9aqpdaWcaaqaaiaaigda cqGHsislcqaHZoWzaeaacqaHdpWCdaqadaqaaiabew9aMjabgUcaRi abeg8aYbGaayjkaiaawMcaaaaadaqadaqaaiabec8aWnaaBaaaleaa caWG0baabeaakiabgkHiTiaabs5adaqdaaqaaiaab2gaaaaacaGLOa GaayzkaaGaey4kaSYaaSaaaeaacqaHdpWCcqaHvpGzcqGHsislcqaH YoGydaqadaqaaiaaigdacqGHsislcqaHipqEaiaawIcacaGLPaaada qadaqaaiaaigdacqGHsislcqaHZoWzcqGHsislcqaHXoqycqaHbpGC cqaHdpWCaiaawIcacaGLPaaaaeaacqaHdpWCdaqadaqaaiabew9aMj abgUcaRiabeg8aYbGaayjkaiaawMcaaaaacaqGsbWaaSbaaSqaaiaa bshacqGHsislcaaIXaaabeaaaOqaaiabgUcaRmaalaaabaGaeqOSdi 2aaeWaaeaacaaIXaGaeyOeI0IaeqiYdKhacaGLOaGaayzkaaWaaeWa aeaacaaIXaGaeyOeI0Iaeq4SdCgacaGLOaGaayzkaaaabaGaeq4Wdm 3aaeWaaeaacqaHvpGzcqGHRaWkcqaHbpGCaiaawIcacaGLPaaaaaGa aeOuamaaBaaaleaacaqG0bGaeyOeI0IaaGOmaaqabaGccqGHsislda WcaaqaamaabmaabaGaaGymaiabgkHiTiabeo7aNbGaayjkaiaawMca aiabeg8aYnaabmaabaGaaGymaiabgkHiTiabek7aInaabmaabaGaaG ymaiabgkHiTiabeI8a5bGaayjkaiaawMcaaiabeg7aHbGaayjkaiaa wMcaaaqaaiabeo8aZnaabmaabaGaeqy1dyMaey4kaSIaeqyWdihaca GLOaGaayzkaaaaaaaaaa@A223@