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

\begin{array}{l} μ_{π f} \equiv \frac{γ}{γ - η + γ η}, μ_{y b} \equiv \frac{- η (1 - γ)}{γ - η + γ η} \\ ϕ \equiv \frac{1}{γ - η + γ η} \\ μ_{π f} \equiv \frac{β θ}{θ + ω (1 - θ (1 - β))}, μ_{π b} \equiv \frac{ω}{θ + ω (1 - θ (1 - β))} \\ κ \equiv \frac{(1 - ω) (1 - θ (1 - θ β))}{θ + ω (1 - θ (1 - β))} . \end{array}