RDP 2006-05: Optimal Monetary Policy with Real-time Signal Extraction from the Bond Market
Equation (11)
y
¯
t
≡
η
(
1
−
γ
)
(
φ
+
γ
)
y
t
−
1
+
1
+
φ
(
φ
+
γ
)
a
t
.
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