RDP 2008-07: A Medium-Scale Open Economy Model of Australia Equation (B1)

π ^ t s π ¯ ^ t c = β 1 + κ s [ E t π t + 1 s ρ π π ¯ ^ t c ] + κ s 1 + κ s β [ π t 1 s 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 ey4kaSIaeqOUdS2aaSbaaSqaaiaadohaaeqaaaaakmaadmaabaGaam yramaaBaaaleaacaWG0baabeaakiabec8aWnaaDaaaleaacaWG0bGa ey4kaSIaaGymaaqaaiaadohaaaGccqGHsislcqaHbpGCdaWgaaWcba GaeqiWdahabeaakmaaHaaabaGafqiWdaNbaebaaiaawkWaamaaDaaa leaacaWG0baabaGaam4yaaaaaOGaay5waiaaw2faaiabgUcaRmaala aabaGaeqOUdS2aaSbaaSqaaiaadohaaeqaaaGcbaGaaGymaiabgUca RiabeQ7aRnaaBaaaleaacaWGZbaabeaakiabek7aIbaadaWadaqaai abec8aWnaaDaaaleaacaWG0bGaeyOeI0IaaGymaaqaaiaadohaaaGc cqGHsislcqaHbpGCdaWgaaWcbaGaeqiWdahabeaakmaaHaaabaGafq iWdaNbaebaaiaawkWaamaaDaaaleaacaWG0bGaeyOeI0IaaGymaaqa aiaadogaaaaakiaawUfacaGLDbaacqGHsislcqWIMaYsaeaadaWcaa qaaiabeQ7aRnaaBaaaleaacaWGZbaabeaakiabek7aInaabmaabaGa aGymaiabgkHiTiabeg8aYnaaBaaaleaacqaHapaCaeqaaaGccaGLOa GaayzkaaaabaGaaGymaiabgUcaRiabeQ7aRnaaBaaaleaacaWGZbaa beaakiabek7aIbaadaqiaaqaaiqbec8aWzaaraaacaGLcmaadaqhaa WcbaGaamiDaaqaaiaadogaaaGccqGHRaWkdaWcaaqaamaabmaabaGa aGymaiabgkHiTiabe67a4naaBaaaleaacaWGZbaabeaaaOGaayjkai aawMcaamaabmaabaGaaGymaiabgkHiTiabek7aIjabe67a4naaBaaa leaacaWGZbaabeaaaOGaayjkaiaawMcaaaqaaiabe67a4naaBaaale aacaWGZbaabeaakmaabmaabaGaaGymaiabgUcaRiabeQ7aRnaaBaaa leaacaWGZbaabeaakiabek7aIbGaayjkaiaawMcaaaaadaqadaqaam aaHaaabaGaamyBaiaadogaaiaawkWaamaaDaaaleaacaWG0baabaGa am4CaaaakiabgUcaRmaaHaaabaGaeq4UdWgacaGLcmaadaqhaaWcba GaamiDaaqaaiaadohaaaaakiaawIcacaGLPaaaaaaa@B423@