RDP 2010-07: Monetary Policy and the Exchange Rate: Evaluation of VAR Models Equation (9)

r t = ρ r r t 1 + α π π t + α x x t + ε r , t MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamOCamaaBaaaleaacaWG0baabeaakiabg2da9iabeg8aYnaaBaaaleaacaWGYbaabeaakiaadkhadaWgaaWcbaGaamiDaiabgkHiTiaaigdaaeqaaOGaey4kaSIaeqySde2aaSbaaSqaaiabec8aWbqabaGccqaHapaCdaWgaaWcbaGaamiDaaqabaGccqGHRaWkcqaHXoqydaWgaaWcbaGaamiEaaqabaGccaWG4bWaaSbaaSqaaiaadshaaeqaaOGaey4kaSIaeqyTdu2aaSbaaSqaaiaadkhacaGGSaGaamiDaaqabaaaaa@5270@