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Fix building failure
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lectures/cagan_adaptive.md

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@@ -75,13 +75,13 @@ The demand for real balances $\exp\left(\frac{m_t^d}{p_t}\right)$ is governed by
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$$
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m_t^d - p_t = -\alpha \pi_t^* \: , \: \alpha > 0 ; \quad t = 0, 1, \ldots, T .
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$$ (eq:caganmd)
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$$ (eq:caganmd_ad)
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This equation asserts that the demand for real balances
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is inversely related to the public's expected rate of inflation.
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Equating the logarithm $m_t^d$ of the demand for money to the logarithm $m_t$ of the supply of money in equation {eq}`eq:caganmd` and solving for the logarithm $p_t$
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Equating the logarithm $m_t^d$ of the demand for money to the logarithm $m_t$ of the supply of money in equation {eq}`eq:caganmd_ad` and solving for the logarithm $p_t$
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of the price level gives
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$$
@@ -258,15 +258,15 @@ m_1 \cr m_2 \cr m_3 \cr \vdots \cr m_T \cr m_{T+1}
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+ \begin{bmatrix}
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m_0 \cr 0 \cr 0 \cr \vdots \cr 0 \cr 0
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\end{bmatrix}
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$$ (eq:eq101)
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$$ (eq:eq101_ad)
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Multiplying both sides of equation {eq}`eq:eq101` with the inverse of the matrix on the left will give
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Multiplying both sides of equation {eq}`eq:eq101_ad` with the inverse of the matrix on the left will give
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$$
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m_t = m_0 + \sum_{s=0}^{t-1} \mu_s, \quad t =1, \ldots, T+1
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$$ (eq:mcum)
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$$ (eq:mcum_ad)
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Equation {eq}`eq:mcum` shows that the log of the money supply at $t$ equals the log $m_0$ of the initial money supply
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Equation {eq}`eq:mcum_ad` shows that the log of the money supply at $t$ equals the log $m_0$ of the initial money supply
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plus accumulation of rates of money growth between times $0$ and $t$.
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We can then compute $p_t$ for each $t$ from equation {eq}`eq:eqfiscth1`.

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