RDP 2010-07: Monetary Policy and the Exchange Rate: Evaluation of VAR Models Equation (12)

s t = σ α ( y t y t * ) σ α σ ( ν x , t ν x , t * ) . MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaam4CamaaBaaaleaacaWG0baabeaakiabg2da9iabeo8aZnaaBaaaleaadaahaaadbeqaaiabeg7aHbaaaSqabaGcdaqadaqaaiaadMhadaWgaaWcbaGaamiDaaqabaGccqGHsislcaWG5bGaaCjaVpaaDaaaleaacaWG0baabaGaaiOkaaaaaOGaayjkaiaawMcaaiabgkHiTmaalaaabaGaeq4Wdm3aaSbaaSqaaiabeg7aHbqabaaakeaacqaHdpWCaaWaaeWaaeaacqaH9oGBdaWgaaWcbaGaamiEaiaacYcacaWG0baabeaakiabgkHiTiabe27aUnaaDaaaleaacaWG4bGaaiilaiaadshaaeaacaGGQaaaaaGccaGLOaGaayzkaaGaaiOlaaaa@5950@