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RDP 2002-01: Inflation Targeting and the Inflation Process: Some Lessons from an Open Economy
Equation (4)
∑
s
=
1
∞
θ
s
−
1
[
(
1
−
λ
)
(
π
t
+
s
−
π
¯
)
2
+
λ
y
t
+
s
2
]
0
≤
λ
<
1
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