RDP 2006-05: Optimal Monetary Policy with Real-time Signal Extraction from the Bond Market Equation (38)

X 1,t|t = X 1,t|t−1 +K[ L 1 X 1,t + L 2 X 1,t|t + v t − L 1 X 1,t|t−1 − L 2 X 1,t|t ] MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamiwamaaBa aaleaacaaIXaGaaiilaiaadshacaGG8bGaamiDaaqabaGccqGH9aqp caWGybWaaSbaaSqaaiaaigdacaGGSaGaamiDaiaacYhacaWG0bGaey OeI0IaaGymaaqabaGccqGHRaWkcaWGlbWaamWaaeaacaWGmbWaaSba aSqaaiaaigdaaeqaaOGaamiwamaaBaaaleaacaaIXaGaaiilaiaads haaeqaaOGaey4kaSIaamitamaaBaaaleaacaaIYaaabeaakiaadIfa daWgaaWcbaGaaGymaiaacYcacaWG0bGaaiiFaiaadshaaeqaaOGaey 4kaSIaaCODamaaBaaaleaacaWG0baabeaakiabgkHiTiaadYeadaWg aaWcbaGaaGymaaqabaGccaWGybWaaSbaaSqaaiaaigdacaGGSaGaam iDaiaacYhacaWG0bGaeyOeI0IaaGymaaqabaGccqGHsislcaWGmbWa aSbaaSqaaiaaikdaaeqaaOGaamiwamaaBaaaleaacaaIXaGaaiilai aadshacaGG8bGaamiDaaqabaaakiaawUfacaGLDbaaaaa@696D@