RDP 8708: Risk Effects Versus Monetary Effects in the Determination of Short-Term Interest Rates Equation

log m t log p t =δ( log( 1+r t )log( 1+r t * ) )δ E t ( π t ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaaeiBaiaab+ gacaqGNbGaaGPaVlaab2gadaWgaaWcbaGaaeiDaaqabaGccaaMc8Ua eyOeI0IaaGPaVlaabYgacaqGVbGaae4zaiaaykW7caqGWbWaaSbaaS qaaiaabshaaeqaaOGaaGPaVlaab2dacaaMc8UaeyOeI0IaaeiTdmaa bmaabaGaaeiBaiaab+gacaqGNbWaaeWaaeaacaqGXaGaae4kaiaabk hadaWgaaWcbaGaaeiDaaqabaaakiaawIcacaGLPaaacaaMc8UaeyOe I0IaaGPaVlaabYgacaqGVbGaae4zamaabmaabaGaaeymaiaabUcaca qGYbWaa0baaSqaaiaabshaaeaacaqGQaaaaaGccaGLOaGaayzkaaaa caGLOaGaayzkaaGaaGPaVlabgkHiTiaaykW7caqG0oGaaGPaVlaabw eadaWgaaWcbaGaaeiDaaqabaGcdaqadaqaaiaabc8adaWgaaWcbaGa aeiDaaqabaaakiaawIcacaGLPaaaaaa@6F82@