RDP 9803: Forward-Looking Behaviour and Credibility: Some Evidence and Implications for Policy
Equation (5a)
r
t
w
i
t
=
δ
1
[
Σ
i
=
0
n
(
r
∼
t
+
i
e
−
r
t
+
i
*
e
)
+
Σ
i
=
0
n
(
t
o
t
t
+
i
e
−
t
o
t
e
q
m
)
+
t
o
t
e
q
m
]
+
(
1
−
δ
1
)
[
t
o
t
t
−
1
+
0.35
(
r
t
∼
−
r
t
∗
)
+
0.30
(
r
∼
t
−
1
−
r
t
−
1
*
)
+
0.25
(
r
∼
t
−
2
−
r
t
−
2
*
)
+
0.10
(
r
∼
t
−
3
−
r
t
−
3
*
)
]
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceiqabeaa8gqaai aadkhacaWG0bGaam4DaiaadMgadaWgaaWcbaGaamiDaaqabaGccqGH 9aqpcqaH0oazdaWgaaWcbaGaaGymaaqabaGcdaWadaqaamaaxadaba Gaeu4OdmfaleaacaWGPbGaeyypa0JaaGimaaqaaiaad6gaaaGccaGG OaWaaCbiaeaacaWGYbaaleqabaGaeSipIOdaaOWaa0baaSqaaiaads hacqGHRaWkcaWGPbaabaGaamyzaaaakiabgkHiTiaadkhadaqhaaWc baGaamiDaiabgUcaRiaadMgaaeaacaGGQaGaamyzaaaakiaacMcacq GHRaWkdaWfWaqaaiabfo6atbWcbaGaamyAaiabg2da9iaaicdaaeaa caWGUbaaaOGaaiikaiaadshacaWGVbGaamiDamaaDaaaleaacaWG0b Gaey4kaSIaamyAaaqaaiaadwgaaaGccqGHsislcaWG0bGaam4Baiaa dshadaahaaWcbeqaaiaadwgacaWGXbGaamyBaaaakiaacMcacqGHRa WkcaWG0bGaam4BaiaadshadaahaaWcbeqaaiaadwgacaWGXbGaamyB aaaaaOGaay5waiaaw2faaiabgUcaRaqaamaabmaabaGaaGymaiabgk HiTiabes7aKnaaBaaaleaacaaIXaaabeaaaOGaayjkaiaawMcaamaa dmaabaGaamiDaiaad+gacaWG0bWaaSbaaSqaaiaadshacqGHsislca aIXaaabeaakiabgUcaRiaaicdacaGGUaGaaG4maiaaiwdadaqadaqa amaaxacabaGaamOCamaaBaaaleaacaWG0baabeaaaeqabaGaeSipIO daaOGaeyOeI0IaamOCamaaDaaaleaacaWG0baabaGaey4fIOcaaaGc caGLOaGaayzkaaGaey4kaSIaaGimaiaac6cacaaIZaGaaGimamaabm aabaWaaCbiaeaacaWGYbaaleqabaGaeSipIOdaaOWaaSbaaSqaaiaa dshacqGHsislcaaIXaaabeaakiabgkHiTiaadkhadaqhaaWcbaGaam iDaiabgkHiTiaaigdaaeaacaGGQaaaaaGccaGLOaGaayzkaaGaey4k aSIaaGimaiaac6cacaaIYaGaaGynamaabmaabaWaaCbiaeaacaWGYb aaleqabaGaeSipIOdaaOWaaSbaaSqaaiaadshacqGHsislcaaIYaaa beaakiabgkHiTiaadkhadaqhaaWcbaGaamiDaiabgkHiTiaaikdaae aacaGGQaaaaaGccaGLOaGaayzkaaGaey4kaSIaaGimaiaac6cacaaI XaGaaGimamaabmaabaWaaCbiaeaacaWGYbaaleqabaGaeSipIOdaaO WaaSbaaSqaaiaadshacqGHsislcaaIZaaabeaakiabgkHiTiaadkha daqhaaWcbaGaamiDaiabgkHiTiaaiodaaeaacaGGQaaaaaGccaGLOa GaayzkaaaacaGLBbGaayzxaaaaaaa@BC95@