RDP 2002-01: Inflation Targeting and the Inflation Process: Some Lessons from an Open Economy Equation (4)

\begin{matrix} \sum_{s = 1}^{\infty} θ^{s - 1} [(1 - λ) {(π_{t + s} - \bar{π})}^{2} + λ y_{t + s}^{2}] & 0 \leq λ < 1 \end{matrix}