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RDP 2011-01: Estimating Inflation Expectations with a Limited Number of Inflation-indexed Bonds
Equation
E
t
(
∫
t
t
+
τ
π
s
d
s
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=
∫
0
τ
ρ
0
+
ρ
′
(
e
−
K
s
x
t
+
(
I
−
e
−
K
s
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μ
)
d
s
V
t
(
∫
t
t
+
τ
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s
d
s
)
=
∫
0
τ
(
ρ
′
(
I
−
e
−
K
s
)
K
−
1
Σ
)
2
d
s
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