RDP 2009-06: Inflation Volatility And Forecast Accuracy Equation (8)

log ( σ ε 2 , t ) = ρ log ( σ ε 2 , t 1 ) + ν ε , t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaciiBaiaac+ gacaGGNbWaaeWaaeaacqaHdpWCdaqhaaWcbaGaeqyTdugabaGaaGOm aaaakmaaBaaaleaacaGGSaGaamiDaaqabaaakiaawIcacaGLPaaacq GH9aqpcqaHbpGCciGGSbGaai4BaiaacEgadaqadaqaaiabeo8aZnaa DaaaleaacqaH1oqzaeaacaaIYaaaaOWaaSbaaSqaaiaacYcacaWG0b GaeyOeI0IaaGymaaqabaaakiaawIcacaGLPaaacqGHRaWkcqaH9oGB daWgaaWcbaGaeqyTduMaaiilaiaadshaaeqaaaaa@55A4@