RDP 8905: Monetary Policy Instruments: A Theoretical Analysis Equation (1)

Excessdemand: y t =-α( R t - E t ( p t+1 - p t ) )+ u t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeqabeGaaa qaaiaabweacaqG4bGaae4yaiaabwgacaqGZbGaae4CaiaaykW7caqG KbGaaeyzaiaab2gacaqGHbGaaeOBaiaabsgacaqG6aaabaGaaeyEam aaBaaaleaacaqG0baabeaakiaab2dacaWGTaGaeqySde2aaeWaaeaa caqGsbWaaSbaaSqaaiaabshaaeqaaOGaamylaiaabweadaWgaaWcba GaaeiDaaqabaGcdaqadaqaaiaabchadaWgaaWcbaGaaeiDaiaadUca caqGXaaabeaakiaad2cacaqGWbWaaSbaaSqaaiaabshaaeqaaaGcca GLOaGaayzkaaaacaGLOaGaayzkaaGaam4kaiaabwhadaWgaaWcbaGa aeiDaaqabaaaaaaa@5959@