RDP 8708: Risk Effects Versus Monetary Effects in the Determination of Short-Term Interest Rates Equation (5)

log  m t  − log  p t  = δ( log  b t ( 1 ) − log  b t * ( 1 ) ) − δ  E t ( π t ). MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaaeiBaiaab+ gacaqGNbGaaGPaVlaab2gadaWgaaWcbaGaaeiDaaqabaGccaaMc8Ua eyOeI0IaaGPaVlaabYgacaqGVbGaae4zaiaaykW7caqGWbWaaSbaaS qaaiaabshaaeqaaOGaaGPaVlaab2dacaaMc8UaeyOeI0IaaeiTdmaa bmaabaGaciiBaiaac+gacaGGNbGaaGPaVlaadkgadaWgaaWcbaGaam iDaaqabaGcdaqadaqaaiaaigdaaiaawIcacaGLPaaacaaMc8UaeyOe I0IaaGPaVlaabYgacaqGVbGaae4zaiaaykW7caqGIbWaa0baaSqaai aabshaaeaacaqGQaaaaOWaaeWaaeaacaqGXaaacaGLOaGaayzkaaaa caGLOaGaayzkaaGaaGPaVlabgkHiTiaaykW7caqG0oGaaGPaVlaabw eadaWgaaWcbaGaaeiDaaqabaGcdaqadaqaaiaabc8adaWgaaWcbaGa aeiDaaqabaaakiaawIcacaGLPaaacaGGUaaaaa@71DE@