RDP 2011-01: Estimating Inflation Expectations with a Limited Number of Inflation-indexed Bonds Equation (B6)

d M t / M t = − π t d t − λ ′ t d B t π t = ρ 0 + ρ ′ x t , λ t = λ 0 + Λ x t dx t = K ( μ − x t ) d t + Σ d B t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaqGKb GaamytamaaBaaaleaacaWG0baabeaakiaac+cacaWGnbWaaSbaaSqa aiaadshaaeqaaOGaeyypa0JaeyOeI0IaeqiWda3aaSbaaSqaaiaads haaeqaaOGaaeizaiaadshacqGHsislcuaH7oaBgaqbamaaBaaaleaa caWG0baabeaakiaabsgacaWHcbWaaSbaaSqaaiaadshaaeqaaaGcba GaeqiWda3aaSbaaSqaaiaadshaaeqaaOGaeyypa0JaeqyWdi3aaSba aSqaaiaaicdaaeqaaOGaey4kaSIafqyWdiNbauaacaqG4bWaaSbaaS qaaiaadshaaeqaaOGaaiilaGGadiab=T7aSnaaBaaaleaacaWG0baa beaakiabg2da9iab=T7aSnaaBaaaleaacaaIWaaabeaakiabgUcaRi abfU5amjaabIhadaWgaaWcbaGaamiDaaqabaaakeaacaqGKbGaaeiE amaaBaaaleaacaWG0baabeaakiabg2da9iaadUeadaqadaqaaiab=X 7aTjabgkHiTiaabIhadaWgaaWcbaGaamiDaaqabaaakiaawIcacaGL PaaacaqGKbGaamiDaiabgUcaRiabfo6atjaabsgacaWHcbWaaSbaaS qaaiaadshaaeqaaaaaaa@72A6@