RDP 2014-02: Fiscal Policy and the Inflation Target Equation (1)

i t = r + π t + 0.5 ( π t π * ) + x t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaacbiGaa8xAam aaBaaaleaacaWG0baabeaakiabg2da9iaadkhacqGHRaWkcqaHapaC daWgaaWcbaGaamiDaaqabaGccqGHRaWkcaaIWaGaaiOlaiaaiwdada qadaqaaiabec8aWnaaBaaaleaacaWG0baabeaakiabgkHiTiabec8a WnaaCaaaleqabaGaaiOkaaaaaOGaayjkaiaawMcaaiabgUcaRiaadI hadaWgaaWcbaGaamiDaaqabaaaaa@4BFA@