From 9f4238c3937cba8d0d320736eef2a36685b7fb17 Mon Sep 17 00:00:00 2001
From: Longye Tian <133612246+longye-tian@users.noreply.github.com>
Date: Mon, 22 Jul 2024 09:46:32 +1000
Subject: [PATCH] update cagan ree (#518)

---
 lectures/cagan_ree.md | 4 ++--
 1 file changed, 2 insertions(+), 2 deletions(-)

diff --git a/lectures/cagan_ree.md b/lectures/cagan_ree.md
index d694c57d..fab16d01 100644
--- a/lectures/cagan_ree.md
+++ b/lectures/cagan_ree.md
@@ -94,7 +94,7 @@ m_t^d - p_t = -\alpha \pi_t^* \: , \: \alpha > 0 ; \quad t = 0, 1, \ldots, T .
 $$ (eq:caganmd)
 
 This equation asserts that the demand for real balances
-is inversely related to the public's expected rate of inflation.
+is inversely related to the public's expected rate of inflation with sensitivity $\alpha$.
 
 People somehow acquire **perfect foresight** by their having solved a forecasting
 problem.
@@ -296,7 +296,7 @@ $$
 \mu_t = \mu^* , \quad t \geq T_1
 $$
 
-so that, in terms of our notation and formula for $\pi_{T+1}^*$ above, $\tilde \gamma = 1$. 
+so that, in terms of our notation and formula for $\pi_{T+1}^*$ above, $\gamma^* = 1$. 
 
 #### Experiment 1: Foreseen sudden stabilization