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RDP 2009-06: Inflation Volatility And Forecast Accuracy
Equation (2)
τ
t
=
τ
t
−
1
+
ε
t
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeqiWda3aaS baaSqaaiaadshaaeqaaOGaeyypa0JaeqiXdq3aaSbaaSqaaiaadsha cqGHsislcaaIXaaabeaakiabgUcaRiabew7aLnaaBaaaleaacaWG0b aabeaaaaa@4232@
ε
t
∼
N
(
0
,
σ
ε
,
t
)
η
t
∼
N
(
0
,
σ
η
,
t
)
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeqabeGaaa qaaiabew7aLnaaBaaaleaacaWG0baabeaakiablYJi6iaad6eadaqa daqaaiaaicdacaGGSaGaeq4Wdm3aaSbaaSqaaiabew7aLjaacYcaca WG0baabeaaaOGaayjkaiaawMcaaaqaaiabeE7aOnaaBaaaleaacaWG 0baabeaakiablYJi6iaad6eadaqadaqaaiaaicdacaGGSaGaeq4Wdm 3aaSbaaSqaaiabeE7aOjaacYcacaWG0baabeaaaOGaayjkaiaawMca aaaaaaa@5029@