RDP 9803: Forward-Looking Behaviour and Credibility: Some Evidence and Implications for Policy Equation (B1.4)

Δrtw i t = α 4 + 7.25 ( 1.72 ) du m t −0.32 ( 0.08 ) rtw i t−1 +0.33 ( 0.12 ) to t t−1 + ( 0.32 ) 0.36du m t−1 ( r t−1 − r t−1 * )+ 0.63 ( 0.21 ) ( 1−du m t−1 )( r t−1 − r t−1 * ) +1.3 ( 0.19 ) 2Δto t t − 0.14Δrtw i t−2 −0.09Δrtw i t−3 [ 0.15 ] −0.17Δrtw i t−4 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceiqabeaa8gqaaG Gaciab=r5aejaadkhacaWG0bGaam4DaiaadMgadaWgaaWcbaGaamiD aaqabaGccqGH9aqpcqaHXoqydaWgaaWcbaGaaGinaaqabaGccqGHRa WkdaWfqaqaaiaaiEdacaGGUaGaaGOmaiaaiwdaaSqaamaabmaabaGa aGymaiaac6cacaaI3aGaaGOmaaGaayjkaiaawMcaaaqabaGccaWGKb GaamyDaiaad2gadaWgaaWcbaGaamiDaaqabaGcdaWfqaqaaiabgkHi TiaaicdacaGGUaGaaG4maiaaikdaaSqaamaabmaabaGaaGimaiaac6 cacaaIWaGaaGioaaGaayjkaiaawMcaaaqabaGccaWGYbGaamiDaiaa dEhacaWGPbWaaSbaaSqaaiaadshacqGHsislcaaIXaaabeaakmaaxa babaGaey4kaSIaaGimaiaac6cacaaIZaGaaG4maaWcbaWaaeWaaeaa caaIWaGaaiOlaiaaigdacaaIYaaacaGLOaGaayzkaaaabeaakiaads hacaWGVbGaamiDamaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGc daWfqaqaaiabgUcaRaWcbaWaaeWaaeaacaaIWaGaaiOlaiaaiodaca aIYaaacaGLOaGaayzkaaaabeaakiaaicdacaGGUaGaaG4maiaaiAda caWGKbGaamyDaiaad2gadaWgaaWcbaGaamiDaiabgkHiTiaaigdaae qaaOWaaeWaaeaacaWGYbWaaSbaaSqaaiaadshacqGHsislcaaIXaaa beaakiabgkHiTiaadkhadaqhaaWcbaGaamiDaiabgkHiTiaaigdaae aacaGGQaaaaaGccaGLOaGaayzkaaGaey4kaScabaWaaCbeaeaacaWG WaGaaiOlaiaaiAdacaaIZaaaleaadaqadaqaaiaaicdacaGGUaGaaG OmaiaaigdaaiaawIcacaGLPaaaaeqaaOWaaeWaaeaacaaIXaGaeyOe I0IaamizaiaadwhacaWGTbWaaSbaaSqaaiaadshacqGHsislcaaIXa aabeaaaOGaayjkaiaawMcaamaabmaabaGaamOCamaaBaaaleaacaWG 0bGaeyOeI0IaaGymaaqabaGccqGHsislcaWGYbWaa0baaSqaaiaads hacqGHsislcaaIXaaabaGaaiOkaaaaaOGaayjkaiaawMcaamaaxaba baGaey4kaSIaaGymaiaac6cacaaIZaaaleaadaqadaqaaiaaicdaca GGUaGaaGymaiaaiMdaaiaawIcacaGLPaaaaeqaaOGaaGOmaiab=r5a ejaadshacaWGVbGaamiDamaaBaaaleaacaWG0baabeaakiabgkHiTm aaxababaGaaGimaiaac6cacaaIXaGaaGinaiab=r5aejaadkhacaWG 0bGaam4DaiaadMgadaWgaaWcbaGaamiDaiabgkHiTiaaikdaaeqaaO GaeyOeI0IaaGimaiaac6cacaaIWaGaaGyoaiab=r5aejaadkhacaWG 0bGaam4DaiaadMgadaWgaaWcbaGaamiDaiabgkHiTiaaiodaaeqaaa qaamaadmaabaGaaGimaiaac6cacaaIXaGaaGynaaGaay5waiaaw2fa aaqabaGccqGHsislcaaIWaGaaiOlaiaaigdacaaI3aGae8hLdqKaam OCaiaadshacaWG3bGaamyAamaaBaaaleaacaWG0bGaeyOeI0IaaGin aaqabaaaaaa@D661@