RDP 2006-02: Term Structure Rules for Monetary Policy Equation

π t − β −1 Λ 1,t−1 + Λ 2,t − Λ 2,t−1 =0 ω x x t + Λ 1,t − β −1 Λ 1,t−1 −λ Λ 2,t =0 ω R R 1,t + Λ 1,t =0 R 1,t − E t x t+1 + x t + E t π t+1 − μ g ( 1−ϕ ) g t +( 1−ρ ) a t =0 π t −λ x t −β E t π t+1 − μ v v t =0 MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@BBAD@