RDP 2011-02: Long-term Interest Rates, Risk Premia and Unconventional Monetary Policy Equation

M t − 1 r + B L , t − L r + W t N t r + T t r + D t r P t = C t r + B L , t r ( R L , t ) L + M t r P t . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaWaaSaaaeaaca WGnbWaa0baaSqaaiaadshacqGHsislcaaIXaaabaGaamOCaaaakiab gUcaRiaadkeadaqhaaWcbaGaamitaiaacYcacaWG0bGaeyOeI0Iaam itaaqaaiaadkhaaaGccqGHRaWkcaWGxbWaaSbaaSqaaiaadshaaeqa aOGaamOtamaaDaaaleaacaWG0baabaGaamOCaaaakiabgUcaRiaads fadaqhaaWcbaGaamiDaaqaaiaadkhaaaGccqGHRaWkcaWGebWaa0ba aSqaaiaadshaaeaacaWGYbaaaaGcbaGaamiuamaaBaaaleaacaWG0b aabeaaaaGccqGH9aqpcaWGdbWaa0baaSqaaiaadshaaeaacaWGYbaa aOGaey4kaSYaaSaaaeaadaWcbaWcbaGaamOqamaaDaaameaacaWGmb GaaiilaiaadshaaeaacaWGYbaaaaWcbaWaaeWaaeaacaWGsbWaaSba aWqaaiaadYeacaGGSaGaamiDaaqabaaaliaawIcacaGLPaaadaahaa adbeqaaiaadYeaaaaaaOGaey4kaSIaamytamaaDaaaleaacaWG0baa baGaamOCaaaaaOqaaiaadcfadaWgaaWcbaGaamiDaaqabaaaaOGaai Olaaaa@6775@