Let me apologize to those of you who view this blog in various readers (I just viewed this blog in Feedly to see how it renders) -- the equations come out as a mess like this:
$$
\log r = \log \frac{Y^0}{\kappa_{LM} LM_{ref}} - \kappa_{LM}\frac{\Delta Y}{Y^0}$$
I use mathjax to render LaTeX, which works great when rendered in a common browser (I highly recommend it). However, it doesn't make it through to some RSS readers.
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Also, try to avoid the use of dollar signs as they interfere with my setup of mathjax. I left it set up that way because I think this is funny for an economics blog. You can use € or £ instead.
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