RDP 2003-11: How Should Monetary Policy Respond to Asset-Price Bubbles? Equation (C1)

y t =β r t1 +λ y t1 + u t π t = π t1 +α y t1 . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaWG5b WaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaeyOeI0IaeqOSdiMaamOC amaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkcqaH7o aBcaWG5bWaaSbaaSqaaiaadshacqGHsislcaaIXaaabeaakiabgUca RiaadwhadaWgaaWcbaGaamiDaaqabaaakeaacqaHapaCdaWgaaWcba GaamiDaaqabaGccqGH9aqpcqaHapaCdaWgaaWcbaGaaCjaVlaadsha cqGHsislcaaIXaaabeaakiabgUcaRiabeg7aHjaadMhadaWgaaWcba GaamiDaiabgkHiTiaaigdaaeqaaOGaaiOlaaaaaa@5A18@