RDP 1999-10: The Implications of Uncertainty for Monetary Policy
Equation (A20)
min
R
L
o
s
s
=
E
[
(
(
F
−
F
¯
)
R
+
G
−
G
¯
)
′
Ω
(
(
F
−
F
¯
)
R
+
G
−
G
¯
]
+
R
′
F
¯
′
Ω
F
¯
R
+
2
R
′
F
¯
′
Ω
G
¯
+
G
¯
′
Ω
G
¯
.
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