⁷Derivation:

mt+1∕pt+1 = (m(t − ct)R∕)pt+1 + yt+1∕pt+1 mt- ct -pt- yt+1 mt+1 = pt − pt R pt+1 + pt+1 = (m − c )(R∕ΦΦΦ )+ 𝜃𝜃𝜃 . ◟-t◝◜--t◞ t+1 t+1 at