RDP 8905: Monetary Policy Instruments: A Theoretical Analysis Equation (4)

p t = 1 α( 1+γ ) u t + γ 1+γ { 1 1+γ } E t p t+i * MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaaiiCamaaBa aaleaacaqG0baabeaakiabg2da9maalaaabaGaaGymaaqaaiaabg7a daqadaqaaiaaigdacqGHRaWkcaqGZoaacaGLOaGaayzkaaaaaiaabw hadaWgaaWcbaGaaeiDaaqabaGccqGHRaWkdaWcaaqaaiaabo7aaeaa caaIXaGaey4kaSIaae4SdaaadaaeabqaamaacmaabaWaaSaaaeaaca aIXaaabaGaaGymaiabgUcaRiaabo7aaaaacaGL7bGaayzFaaGaaeyr amaaBaaaleaacaqG0baabeaakiaabchadaWgaaWcbaGaaeiDaiabgU caRiaabMgaaeqaaOWaaWbaaSqabeaacaGGQaaaaaqabeqaniabggHi Ldaaaa@553D@