RDP 9608: Modelling the Australian Exchange Rate, Long Bond Yield and Inflationary Expectations
Equation
y
t
=
ξ
t
+
r
t
+
ε
t
where
:
r
t
=
r
t
−
1
+
u
t
.
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaWG5b WaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaeqOVdG3aaSbaaSqaaiaa dshaaeqaaOGaey4kaSIaamOCamaaBaaaleaacaWG0baabeaakiabgU caRiabew7aLnaaBaaaleaacaWG0baabeaaaOqaaiaadEhacaWGObGa amyzaiaadkhacaWGLbGaaiOoaiaaykW7caaMc8UaaGPaVlaaykW7ca WGYbWaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaamOCamaaBaaaleaa caWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkcaWG1bWaaSbaaSqaai aadshaaeqaaOGaaiOlaaaaaa@5937@