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Together, (A. stars 77 slot login 1a0 ) and (A 1b0 ) imply that log(p2t ) = Et¡1 log(p1t ): (A 3) From the aggregate price index equation (10 ), we have an approximate relation of the following kind log(Pt ) = n[° log(p1t ) + (1 ¡ °) log(p2t )] + (1 ¡ n) log("t p¤t ): (A 4) From this, the unanticipated rate of in‡ation is given by log(Pt ) ¡ Et¡1 [log(Pt