RDP 9103: The Failure of Uncovered Interest Parity: Is it Near-Rationality in the Foreign Exchange Market?
Equation (5)
maximize
E
t
(
U
t+1
)
=
W
t
[
x
t
′
E
t
(
z
t+1
)
+
l
+
r
t+1
us
−
ρ
2
x
t
′
Ω
x
t
]
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