RDP 9101: The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows
Equation (12)
r
=
r
*
+
π
[
τ
(
1
−
τ
)
+
δ
/
ε
γ
]
and
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeaabeGaaa qaaiaabkhacqGH9aqpcaqGYbWaaWbaaSqabeaacaGGQaaaaOGaey4k aSIaeqiWda3aamWaaeaadaWcaaqaaiabes8a0bqaamaabmaabaGaaG ymaGGaaiab=jHiTiabes8a0bGaayjkaiaawMcaaiabgUcaRiabes7a Kjaac+cacqaH1oqzcqaHZoWzaaaacaGLBbGaayzxaaaabaGaaeyyai aab6gacaqGKbaaaaaa@4E7A@