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RDP 2008-10: Solving Linear Rational Expectations Models with Predictable Structural Changes
Equation (22)
π
t
=
1
(
1
+
β
α
)
(
(
1
+
β
α
−
α
−
β
)
π
*
+
α
π
t
−
1
+
ψ
σ
y
^
t
−
ψ
z
^
t
+
β
E
t
π
t
+
1
−
e
^
t
)
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