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

R ^ 1 , t = 2 E t [ ∑ j = 0 ∞ R ^ 2 , t + 2 j − ∑ j = 0 ∞ R ^ 2 , t + 2 j + 1 ] − E t [ ∑ j = 0 ∞ Φ t + 2 j − ∑ j = 0 ∞ Φ t + 2 j + 1 ] . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaaeaaaaaaaaa8 qaceWGsbGbaKaadaWgaaWcbaGaaGymaiaacYcacaWG0baabeaakiab g2da9iaaikdaieaacaWFjbGaa8xramaaBaaaleaacaWG0baabeaakm aadmaabaWaaabCaeaaceWGsbGbaKaadaWgaaWcbaGaaGOmaiaacYca caWG0bGaey4kaSIaaGOmaiaadQgaaeqaaOGaeyOeI0YaaabCaeaace WGsbGbaKaadaWgaaWcbaGaaGOmaiaacYcacaWG0bGaey4kaSIaaGOm aiaadQgacqGHRaWkcaaIXaaabeaaaeaacaWGQbGaeyypa0JaaGimaa qaaiabg6HiLcqdcqGHris5aaWcbaGaamOAaiabg2da9iaaicdaaeaa cqGHEisPa0GaeyyeIuoaaOGaay5waiaaw2faaiabgkHiTiaa=Leaca WFfbWaaSbaaSqaaiaadshaaeqaaOWaamWaaeaadaaeWbqaaiabfA6a gnaaBaaaleaacaWG0bGaey4kaSIaaGOmaiaadQgaaeqaaOGaeyOeI0 YaaabCaeaacqqHMoGrdaWgaaWcbaGaamiDaiabgUcaRiaaikdacaWG QbGaey4kaSIaaGymaaqabaaabaGaamOAaiabg2da9iaaicdaaeaacq GHEisPa0GaeyyeIuoaaSqaaiaadQgacqGH9aqpcaaIWaaabaGaeyOh IukaniabggHiLdaakiaawUfacaGLDbaacaGGUaaaaa@7B73@