RDP 9812: An Optimising Model for Monetary Policy Analysis: Can Habit Formation Help? Equation (12)

f t =(1 i=1 2 α f,i )( ρ ¯ + π ¯ )+ i=1 2 α f,i f ti + j=0 2 α π,j ( π tj π ¯ )+ k=0 2 α y,k y tk + ε ft MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceiqabeaa8gqaai aadAgadaWgaaWcbaGaamiDaaqabaGccqGH9aqpcaGGOaGaaGymaiab gkHiTmaaqahabaGaeqySde2aaSbaaSqaaiaadAgacaGGSaGaamyAaa qabaaabaGaamyAaiabg2da9iaaigdaaeaacaaIYaaaniabggHiLdGc caGGPaGaaiikaiqbeg8aYzaaraGaey4kaSIafqiWdaNbaebacaGGPa Gaey4kaSYaaabCaeaacqaHXoqydaWgaaWcbaGaamOzaiaacYcacaWG PbaabeaaaeaacaWGPbGaeyypa0JaaGymaaqaaiaaikdaa0GaeyyeIu oakiaadAgadaWgaaWcbaGaamiDaiabgkHiTiaadMgaaeqaaOGaey4k aSYaaabCaeaacqaHXoqydaWgaaWcbaGaeqiWdaNaaiilaiaacQgaae qaaaqaaiaadQgacqGH9aqpcaaIWaaabaGaaGOmaaqdcqGHris5aOGa aiikaiabec8aWnaaBaaaleaacaWG0bGaeyOeI0IaamOAaaqabaGccq GHsislcuaHapaCgaqeaiaacMcacqGHRaWkaeaadaaeWbqaaiabeg7a HnaaBaaaleaacaWG5bGaaiilaiaadUgaaeqaaOGaamyEamaaBaaale aacaWG0bGaeyOeI0Iaam4AaaqabaaabaGaam4Aaiabg2da9iaaicda aeaacaaIYaaaniabggHiLdGccqGHRaWkcqaH1oqzdaWgaaWcbaGaam Ozaiaadshaaeqaaaaaaa@83CF@