RDP 2010-07: Monetary Policy and the Exchange Rate: Evaluation of VAR Models Equation (14)

a t = ρ a a t 1 + ε a , t MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamyyamaaBaaaleaacaWG0baabeaakiabg2da9iabeg8aYnaaBaaaleaacaWGHbaabeaakiaadggadaWgaaWcbaGaamiDaiabgkHiTiaaigdaaeqaaOGaey4kaSIaeqyTdu2aaSbaaSqaaiaadggacaGGSaGaamiDaaqabaaaaa@44EC@