RDP 2006-05: Optimal Monetary Policy with Real-time Signal Extraction from the Bond Market
Equation (21)
X
1
,
t
|
t
=
X
1
,
t
|
t
−
1
+
K
[
Z
t
−
L
1
X
1
,
t
|
t
−
1
−
L
2
X
1
,
t
|
t
]
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