Research Discussion Paper – RDP 2006-05 Optimal Monetary Policy with Real-time Signal Extraction from the Bond Market

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The author thanks Giuseppe Bertola, James Hansen, Christopher Kent, Mariano Kulish, Gernot Mueller, Steven Pennings, David Vestin, Thomas Sargent, Frank Smets, Oreste Tristani and seminar participants at the ECB for valuable comments and discussions. The views expressed in this paper are those of the author and not necessarily those of the Reserve Bank of Australia.