RDP 9608: Modelling the Australian Exchange Rate, Long Bond Yield and Inflationary Expectations
Equation (2)
Δ
r
e
r
t
=
α
+
β
r
e
r
t
−
1
+
δ
t
o
t
t
−
1
+
ϕ
c
a
d
t
−
1
+
γ
Y
G
A
P
t
−
1
+
Σ
i
=
0
1
φ
i
[
Δ
g
d
e
f
g
d
p
]
−
i
+
θ
Δ
t
o
t
t
+
ε
t
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