RDP 2000-07: The Effect of Uncertainty on Monetary Policy: How Good are the Brakes? Equation

y t =b i t1 + ε t and π t =a π t1 + y t1 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamyEamaaBa aaleaacaWG0baabeaakiabg2da9iabgkHiTiaadkgacaWGPbWaaSba aSqaaiaadshacqGHsislcaaIXaaabeaakiabgUcaRiabew7aLnaaBa aaleaacaWG0baabeaakiaaykW7caqGHbGaaeOBaiaabsgacaaMc8Ua eqiWda3aaSbaaSqaaiaadshaaeqaaOGaeyypa0Jaamyyaiabec8aWn aaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkcaWG5bWa aSbaaSqaaiaadshacqGHsislcaaIXaaabeaaaaa@5665@