RDP 2008-03: Monetary Transmission and the Yield Curve in a Small Open Economy Equation (17)

a t = ρ a a t 1 + ε a , t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamyyamaaBa aaleaacaWG0baabeaakiabg2da9iabeg8aYnaaBaaaleaacaWGHbaa beaakiaadggadaWgaaWcbaGaamiDaiabgkHiTiaaigdaaeqaaOGaey 4kaSIaeqyTdu2aaSbaaSqaaiaadggacaGGSaGaamiDaaqabaaaaa@44EE@