RDP 2017-02: Anticipatory Monetary Policy and the ‘Price Puzzle’ Equation

cov ^ ( ψ ^ t1 , Z t1 )= cov ^ ( r t1 ρ ^ 0 ρ ^ 1 E t1 ( π t ), Z t1 ) = cov ^ ( r t1 , Z t1 ) ρ ^ 1 ω 1 θ cov ^ ( r t2 , Z t1 ) ρ ^ 1 ω 2 var ^ ( Z t1 ) = ρ ^ 1 ω 2 var ^ ( Z t1 ) ρ ^ 1 ω 2 var ^ ( Z t1 )=0 MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@B55C@