RDP 9807: Inflation Targeting in a Small Open Economy Equation

X t = ( π t N , y t , ρ t , i t−1 , q t−1 , e t−2 , e t−1 ) ′ Y t = ( π t , π t N , y t , i t , i t − i t−1 ) ′ x t = ( e t , t π t+1 N ) ′ ν t = ( ε t N , ε t y , ε t ρ ,0,0,0,0 ) ′ MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeaabqWaaa aabaGaamiwamaaBaaaleaacaWG0baabeaaaOqaaiabg2da9aqaamaa bmaabaGaeqiWda3aa0baaSqaaiaadshaaeaacaWGobaaaOGaaiilai aadMhadaWgaaWcbaGaamiDaaqabaGccaGGSaGaeqyWdi3aaSbaaSqa aiaadshaaeqaaOGaaiilaiaadMgadaWgaaWcbaGaamiDaiabgkHiTi aaigdaaeqaaOGaaiilaiaadghadaWgaaWcbaGaamiDaiabgkHiTiaa igdaaeqaaOGaaiilaiaadwgadaWgaaWcbaGaamiDaiabgkHiTiaaik daaeqaaOGaaiilaiaadwgadaWgaaWcbaGaamiDaiabgkHiTiaaigda aeqaaaGccaGLOaGaayzkaaWaaWbaaSqabeaakiadacUHYaIOaaaaba GaamywamaaBaaaleaacaWG0baabeaaaOqaaiabg2da9aqaamaabmaa baGaeqiWda3aaSbaaSqaaiaadshaaeqaaOGaaiilaiabec8aWnaaDa aaleaacaWG0baabaGaamOtaaaakiaacYcacaWG5bWaaSbaaSqaaiaa dshaaeqaaOGaaiilaiaadMgadaWgaaWcbaGaamiDaaqabaGccaGGSa GaamyAamaaBaaaleaacaWG0baabeaakiabgkHiTiaadMgadaWgaaWc baGaamiDaiabgkHiTiaaigdaaeqaaaGccaGLOaGaayzkaaWaaWbaaS qabeaakiadacUHYaIOaaaabaGaamiEamaaBaaaleaacaWG0baabeaa aOqaaiabg2da9aqaamaabmaabaGaamyzamaaBaaaleaacaWG0baabe aakiaacYcadaWgaaWcbaGaamiDaaqabaGccqaHapaCdaqhaaWcbaGa amiDaiabgUcaRiaaigdaaeaacaWGobaaaaGccaGLOaGaayzkaaWaaW baaSqabeaakiadacUHYaIOaaaabaGaeqyVd42aaSbaaSqaaiaadsha aeqaaaGcbaGaeyypa0dabaWaaeWaaeaacqaH1oqzdaqhaaWcbaGaam iDaaqaaiaad6eaaaGccaGGSaGaeqyTdu2aa0baaSqaaiaadshaaeaa caWG5baaaOGaaiilaiabew7aLnaaDaaaleaacaWG0baabaGaeqyWdi haaOGaaiilaiaaicdacaGGSaGaaGimaiaacYcacaaIWaGaaiilaiaa icdaaiaawIcacaGLPaaadaahaaWcbeqaaOGamai4gkdiIcaaaaaaaa@A2FD@