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

Δ p t = β 2 [ − p t−1 + β 1 ul c t−1 +( 1− β 1 )i p t−1 ]+ ( 1− β 2 )0.25[ β 3 Σ i−1 4 Δ p t+i e +( 1− β 3 ) Σ i=1 4 Δ p t−i ]+ β 4 ga p t−1 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaaiiGacq WFuoarieGacaGFWbWaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaeqOS di2aaSbaaSqaaiaaikdaaeqaaOWaamWaaeaacqGHsislcaWGWbWaaS baaSqaaiaadshacqGHsislcaaIXaaabeaakiabgUcaRiabek7aInaa BaaaleaacaaIXaaabeaakiaadwhacaWGSbGaam4yamaaBaaaleaaca WG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkdaqadaqaaiaaigdacqGH sislcqaHYoGydaWgaaWcbaGaaGymaaqabaaakiaawIcacaGLPaaaca WGPbGaamiCamaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaaakiaa wUfacaGLDbaacqGHRaWkaeaadaqadaqaaiaaigdacqGHsislcqaHYo GydaWgaaWcbaGaaGOmaaqabaaakiaawIcacaGLPaaacaaIWaGaaiOl aiaaikdacaaI1aWaamWaaeaacqaHYoGydaWgaaWcbaGaaG4maaqaba GcdaaeWbqaaiab=r5aebWcbaGaamyAaiabgkHiTiaaigdaaeaacaaI 0aaaniabggHiLdGccaWGWbWaa0baaSqaaiaadshacqGHRaWkcaWGPb aabaGaamyzaaaakiabgUcaRmaabmaabaGaaGymaiabgkHiTiabek7a InaaBaaaleaacaaIZaaabeaaaOGaayjkaiaawMcaamaaqahabaGae8 hLdqKaa4hCamaaBaaaleaacaWG0bGaeyOeI0IaamyAaaqabaaabaGa amyAaiabg2da9iaaigdaaeaacaaI0aaaniabggHiLdaakiaawUfaca GLDbaacqGHRaWkcqaHYoGydaWgaaWcbaGaaGinaaqabaGccaWGNbGa amyyaiaadchadaWgaaWcbaGaamiDaiabgkHiTiaaigdaaeqaaaaaaa@8CF6@