RDP 2006-05: Optimal Monetary Policy with Real-time Signal Extraction from the Bond Market
Equation (2)
U
(
C
t
(
j
)
,
N
t
(
j
)
)
=
(
C
t
(
j
)
H
t
−
η
)
1
−
γ
(
1
−
γ
)
−
N
t
(
j
)
1
+
φ
1
+
φ
.
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