RDP 2008-07: A Medium-Scale Open Economy Model of Australia Equation (1)

π ^ t s − π ¯ ^ t c = β 1 + κ s β [ E t π t + 1 s − ρ π π ¯ ^ t c ] + κ s 1 + κ s β [ π ^ t − 1 − ρ π π ¯ ^ t − 1 c ] − κ s β ( 1 − ρ π ) 1 + κ s β π ¯ ^ t c + ( 1 − ξ s ) ( 1 − β ξ s ) ξ s ( 1 + κ s β ) ( m c ^ t s + λ ^ t s ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaadaqiaa qaaiabec8aWbGaayPadaWaa0baaSqaaiaadshaaeaacaWGZbaaaOGa eyOeI0YaaecaaeaacuaHapaCgaqeaaGaayPadaWaa0baaSqaaiaads haaeaacaWGJbaaaOGaeyypa0ZaaSaaaeaacqaHYoGyaeaacaaIXaGa ey4kaSIaeqOUdS2aaSbaaSqaaiaadohaaeqaaOGaeqOSdigaamaadm aabaGaamyramaaBaaaleaacaWG0baabeaakiabec8aWnaaDaaaleaa caWG0bGaey4kaSIaaGymaaqaaiaadohaaaGccqGHsislcqaHbpGCda WgaaWcbaGaeqiWdahabeaakmaaHaaabaGafqiWdaNbaebaaiaawkWa amaaDaaaleaacaWG0baabaGaam4yaaaaaOGaay5waiaaw2faaiabgU caRmaalaaabaGaeqOUdS2aaSbaaSqaaiaadohaaeqaaaGcbaGaaGym aiabgUcaRiabeQ7aRnaaBaaaleaacaWGZbaabeaakiabek7aIbaada WadaqaamaaHaaabaGaeqiWdahacaGLcmaadaWgaaWcbaGaamiDaiab gkHiTiaaigdaaeqaaOGaeyOeI0IaeqyWdi3aaSbaaSqaaiabec8aWb qabaGcdaqiaaqaaiqbec8aWzaaraaacaGLcmaadaqhaaWcbaGaamiD aiabgkHiTiaaigdaaeaacaWGJbaaaaGccaGLBbGaayzxaaGaeyOeI0 cabaWaaSaaaeaacqaH6oWAdaWgaaWcbaGaam4CaaqabaGccqaHYoGy daqadaqaaiaaigdacqGHsislcqaHbpGCdaWgaaWcbaGaeqiWdahabe aaaOGaayjkaiaawMcaaaqaaiaaigdacqGHRaWkcqaH6oWAdaWgaaWc baGaam4CaaqabaGccqaHYoGyaaWaaecaaeaacuaHapaCgaqeaaGaay PadaWaa0baaSqaaiaadshaaeaacaWGJbaaaOGaey4kaSYaaSaaaeaa daqadaqaaiaaigdacqGHsislcqaH+oaEdaWgaaWcbaGaam4Caaqaba aakiaawIcacaGLPaaadaqadaqaaiaaigdacqGHsislcqaHYoGycqaH +oaEdaWgaaWcbaGaam4CaaqabaaakiaawIcacaGLPaaaaeaacqaH+o aEdaWgaaWcbaGaam4CaaqabaGcdaqadaqaaiaaigdacqGHRaWkcqaH 6oWAdaWgaaWcbaGaam4CaaqabaGccqaHYoGyaiaawIcacaGLPaaaaa WaaeWaaeaadaqiaaqaaiaad2gacaWGJbaacaGLcmaadaqhaaWcbaGa amiDaaqaaiaadohaaaGccqGHRaWkdaqiaaqaaiabeU7aSbGaayPada Waa0baaSqaaiaadshaaeaacaWGZbaaaaGccaGLOaGaayzkaaaaaaa@B46B@