RDP 8905: Monetary Policy Instruments: A Theoretical Analysis Equation (9)

( ii ) R t = E t ( p t+1 p t )+γ( p t + y t ) ( nominalincometarget ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeqabeWaaa qaamaabmaabaGaaeyAaiaabMgaaiaawIcacaGLPaaaaeaacaqGsbWa aSbaaSqaaiaabshaaeqaaOGaeyypa0JaaeyramaaBaaaleaacaqG0b aabeaakmaabmaabaGaaeiCamaaBaaaleaacaqG0bGaey4kaSIaaGym aaqabaGccqGHsislcaqGWbWaaSbaaSqaaiaabshaaeqaaaGccaGLOa GaayzkaaGaey4kaSIaae4SdmaabmaabaGaaeiCamaaBaaaleaacaqG 0baabeaakiabgUcaRiaabMhadaWgaaWcbaGaaeiDaaqabaaakiaawI cacaGLPaaaaeaadaqadaqaaiaab6gacaqGVbGaaeyBaiaabMgacaqG UbGaaeyyaiaabYgacaaMc8UaaeyAaiaab6gacaqGJbGaae4Baiaab2 gacaqGLbGaaGPaVlaabshacaqGHbGaaeOCaiaabEgacaqGLbGaaeiD aaGaayjkaiaawMcaaaaaaaa@65CD@