RDP 2003-11: How Should Monetary Policy Respond to Asset-Price Bubbles? Equation (4)

y t =β r t1 +λ y t1 +Δ a t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamyEamaaBa aaleaacaWG0baabeaakiabg2da9iabgkHiTiabek7aIjaadkhadaWg aaWcbaGaamiDaiabgkHiTiaaigdaaeqaaOGaey4kaSIaeq4UdWMaam yEamaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkcqqH uoarcaWGHbWaaSbaaSqaaiaadshaaeqaaaaa@4A43@