RDP 2011-01: Estimating Inflation Expectations with a Limited Number of Inflation-indexed Bonds Equation

\int_{0}^{τ} ρ^{'} e^{- K s} x_{t} d s = ρ^{'} (I - e^{- K t}) K^{- 1} x_{t} = ρ^{'} {M^{'}}_{1, τ} x_{t}