RDP 2009-01: Currency Misalignments and Optimal Monetary Policy: A Re-examination
Equation (18)
Y
t
=
C
H
t
+
C
H
t
∗
=
ν
2
P
t
C
t
P
H
t
+
(
1
−
ν
2
)
P
t
∗
C
t
∗
P
H
t
∗
=
k
−
1
(
ν
2
S
t
1
−
(
ν
/
2
)
C
t
+
(
1
−
ν
2
)
(
S
t
∗
)
−
ν
/
2
C
t
∗
)
,
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