# RDP 9803: Forward-Looking Behaviour and Credibility: Some Evidence and Implications for Policy Equation (3a)

$$\Delta {p}_{t}=-{p}_{t-1}+{\beta}_{1}ul{c}_{t-1}+\left(1-{\beta}_{1}\right)i{p}_{t-1}$$

$$\Delta {p}_{t}=-{p}_{t-1}+{\beta}_{1}ul{c}_{t-1}+\left(1-{\beta}_{1}\right)i{p}_{t-1}$$