RDP 2011-02: Long-term Interest Rates, Risk Premia and Unconventional Monetary Policy Equation (1)

E 0 t = 0 β t { a t [ U ( C t u ( C t 1 u ) h ) + V ( M t u e t P t ) ( N t u ) 1 + φ 1 + φ ] G ( ) } , MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaWexLMBb50ujb qegmuyZrxzSXwyYbacfaGae8xrau0aaSbaaSqaaiaaicdaaeqaaOWa aabCaeaacqaHYoGydaahaaWcbeqaaiaadshaaaGcdaGadaqaaiaadg gadaWgaaWcbaGaamiDaaqabaGcdaWadaqaaiaadwfadaqadaqaamaa laaabaGaam4qamaaDaaaleaacaWG0baabaGaamyDaaaaaOqaamaabm aabaGaam4qamaaDaaaleaacaWG0bGaeyOeI0IaaGymaaqaaiaadwha aaaakiaawIcacaGLPaaadaahaaWcbeqaaiaadIgaaaaaaaGccaGLOa GaayzkaaGaey4kaSIaamOvamaabmaabaWaaSaaaeaacaWGnbWaa0ba aSqaaiaadshaaeaacaWG1baaaaGcbaGaamyzamaaBaaaleaacaWG0b aabeaakiaadcfadaWgaaWcbaGaamiDaaqabaaaaaGccaGLOaGaayzk aaGaeyOeI0YaaSaaaeaadaqadaqaaiaad6eadaqhaaWcbaGaamiDaa qaaiaadwhaaaaakiaawIcacaGLPaaadaahaaWcbeqaaiaaigdacqGH RaWkcqaHgpGAaaaakeaacaaIXaGaey4kaSIaeqOXdOgaaaGaay5wai aaw2faaiabgkHiTiaadEeadaqadaqaaiabgwSixdGaayjkaiaawMca aaGaay5Eaiaaw2haaaWcbaGaamiDaiabg2da9iaaicdaaeaacqGHEi sPa0GaeyyeIuoakiaacYcaaaa@7764@