RDP 9601: Why Does the Australian Dollar Move so Closely with the Terms of Trade?
Equation (7)
Δ
q
t
=
α
0
+
α
1
t
+
∑
i
=
0
4
γ
i
Δ
t
o
t
t
−
i
+
∑
i
=
1
4
λ
i
Δ
q
t
−
i
+
χ
1
t
o
t
t
−
1
+
χ
2
q
t
−
1
+
ε
t
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