Suppose that we have the following estimated distributed lag model:

=0.01+0.3+0.21

(0.002)(0.1)(0.08)

where y is the weekly change in the three-month interbank lending rate in Canada and x is the weekly change in the three-month interbank lending rate in the USA, both measured in percentage points, and numbers in ( )are the standard errors.

Suppose that both y and x are covariance-stationary.

i)

Under what conditions would OLS estimation of this model be consistent? Do you think these conditions would be satisfied?