RDP 9601: Why Does the Australian Dollar Move so Closely with the Terms of Trade? Equation (1)

Δto t t =α+βt+(ρ1)to t t1 + j=1 p γ j Δto t tj + ε t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeuiLdqKaam iDaiaad+gacaWG0bWaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaeqyS deMaey4kaSIaeqOSdiMaamiDaiabgUcaRiaacIcacqaHbpGCcqGHsi slcaaIXaGaaiykaiaadshacaWGVbGaamiDamaaBaaaleaacaWG0bGa eyOeI0IaaGymaaqabaGccqGHRaWkdaaeWbqaaiabeo7aNnaaBaaale aacaWGQbaabeaakiabfs5aejaadshacaWGVbGaamiDamaaBaaaleaa caWG0bGaeyOeI0IaamOAaaqabaGccqGHRaWkcqaH1oqzdaWgaaWcba GaamiDaaqabaaabaGaamOAaiabg2da9iaaigdaaeaacaWGWbaaniab ggHiLdaaaa@6181@