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RDP 9101: The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows
Equation (3)
y
=
−
γ
(
i
[
1
−
τ
]
−
Dp
)
+
δ
(
e
−
p
)
;
γ
,
δ
>
0
(
IS
curve
)
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