RDP 9803: Forward-Looking Behaviour and Credibility: Some Evidence and Implications for Policy
Equation (4c)
Δ
u
l
c
t
=
γ
3
Δ
p
t
e
+
(
1
−
γ
3
)
0.25
Σ
i
=
1
4
Δ
p
t
−
i
+
γ
1
[
(
u
l
c
−
p
)
e
q
m
−
(
u
l
c
t
−
1
−
p
t
−
1
)
]
+
γ
2
g
a
p
t
−
1
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