RDP 1999-10: The Implications of Uncertainty for Monetary Policy
Equation (1)
L
o
s
s
=
E
t
[
α
∑
j
=
1
h
g
a
p
t
+
j
2
+
β
∑
j
=
1
h
(
π
t
+
j
−
π
∗
)
2
+
γ
∑
j
=
1
h
(
i
t
+
j
−
i
t
+
j
−
1
)
2
]
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