RDP 2010-07: Monetary Policy and the Exchange Rate: Evaluation of VAR Models Equation (16)

ν x , t = ρ x ν x , t 1 + ε x , t MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeqyVd42aaSbaaSqaaiaadIhacaGGSaGaamiDaaqabaGccqGH9aqpcqaHbpGCdaWgaaWcbaGaamiEaaqabaGccqaH9oGBdaWgaaWcbaGaamiEaiaacYcacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkcqaH1oqzdaWgaaWcbaGaamiEaiaacYcacaWG0baabeaaaaa@4A18@