RDP 2003-11: How Should Monetary Policy Respond to Asset-Price Bubbles?
Equation (3)
a
t
=
{
a
t
−
1
+
γ
t
,
with
probability
1
−
p
t
0
,
with
probability
p
t
.
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamyyamaaBa aaleaacaWG0baabeaakiabg2da9maaceaabaqbaeaabiWaaaqaaiaa dggadaWgaaWcbaGaamiDaiabgkHiTiaaigdaaeqaaOGaey4kaSIaeq 4SdC2aaSbaaSqaaiaadshaaeqaaaGcbaGaaiilaaqaaiaadEhacaWG PbGaamiDaiaadIgacaaMc8UaamiCaiaadkhacaWGVbGaamOyaiaadg gacaWGIbGaamyAaiaadYgacaWGPbGaamiDaiaadMhacaaMc8UaaGym aiabgkHiTiaadchadaWgaaWcbaGaamiDaaqabaaakeaacaaIWaaaba GaaiilaaqaaiaadEhacaWGPbGaamiDaiaadIgacaaMc8UaamiCaiaa dkhacaWGVbGaamOyaiaadggacaWGIbGaamyAaiaadYgacaWGPbGaam iDaiaadMhacaaMc8UaamiCamaaBaaaleaacaWG0baabeaakiaac6ca aaaacaGL7baaaaa@6CEA@