RDP 2005-04: Monetary Policy, Asset-Price Bubbles and the Zero Lower Bound Equation (14)

r t = max ( β 1 ( λ + α q ) y t + β 1 q π t , r t z l b ) MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamOCamaaBaaaleaacaWG0baabeaakiabg2da9iGac2gacaGGHbGaaiiEamaabmaabaGaeqOSdi2aaWbaaSqabeaacqGHsislcaaIXaaaaOWaaeWaaeaacqaH7oaBcqGHRaWkcqaHXoqycaWGXbaacaGLOaGaayzkaaGaamyEamaaBaaaleaacaWG0baabeaakiabgUcaRiabek7aInaaCaaaleqabaGaeyOeI0IaaGymaaaakiaadghacqaHapaCdaWgaaWcbaGaamiDaaqabaGccaGGSaGaamOCamaaDaaaleaacaWG0baabaGaamOEaiaadYgacaWGIbaaaaGccaGLOaGaayzkaaaaaa@57D0@