Some Mathematical Points on the NKPC

Given my comparative advantage in maths, I figured that's what I should offer this blog. Let me know if there are any algebraic errors, or if it's partially (or totally) incomprehensible. I've attached a document (see file below) describing a generic method of solving second order stochastic difference equations, which come up in at least two places in Jennifer Smith's lecture notes.
Nikhil

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