RDP 2006-05: Optimal Monetary Policy with Real-time Signal Extraction from the Bond Market Equation (23)

Y t =q+ Q 1 X 1,t + Q 2 X 1,t|t + v t Y MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaWexLMBb50ujb qegSuDUnhDSvMCGm1yYLgC0bacfaGae8xwaK1aaSbaaSqaaiaadsha aeqaaOGaeyypa0JaaCyCaiabgUcaRiaadgfadaWgaaWcbaGaaGymaa qabaGccaWGybWaaSbaaSqaaiaaigdacaGGSaGaamiDaaqabaGccqGH RaWkcaWGrbWaaSbaaSqaaiaaikdaaeqaaOGaamiwamaaBaaaleaaca aIXaGaaiilaiaadshacaGG8bGaamiDaaqabaGccqGHRaWkcaqG2bWa a0baaSqaaiaadshaaeaacaWGzbaaaaaa@54F2@