In the above equations, superscript x denotes country x and superscript y denotes country y. So, x W is the wealth of country x denominated in the currency of country x; and x M stands for the demand for money in country x valued in currency x.
x B is the total bonds denominated in currency x in both countries; y Bx
is the bond holdings denominated in currency y in held in country x;
x Bx
is the bond holdings denominated in currency x in held in country x;
x Bx
is the bond holdings denominated in currency x in held in country x; x Bxp
is the private bond holdings