RDP 2018-04: DSGE Reno: Adding a Housing Block to a Small Open Economy Model Equation (31)

r t * = ρ r * r t1 * +( 1 ρ r * )( ϕ π * π t * + ϕ d y * ( y t * y t1 * ) )+ ε r * ,t MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@698D@