RDP 2006-05: Optimal Monetary Policy with Real-time Signal Extraction from the Bond Market Equation (9)

m c t =( φ+γ ) y t +η( 1γ ) y t1 ( 1+φ ) a t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamyBaiaado gadaWgaaWcbaGaamiDaaqabaGccqGH9aqpdaqadaqaaiabeA8aQjab gUcaRiabeo7aNbGaayjkaiaawMcaaiaadMhadaWgaaWcbaGaamiDaa qabaGccqGHRaWkcqaH3oaAdaqadaqaaiaaigdacqGHsislcqaHZoWz aiaawIcacaGLPaaacaWG5bWaaSbaaSqaaiaadshacqGHsislcaaIXa aabeaakiabgkHiTmaabmaabaGaaGymaiabgUcaRiabeA8aQbGaayjk aiaawMcaaiaadggadaWgaaWcbaGaamiDaaqabaaaaa@5517@