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

\begin{array}{l} {\hat{x}}_{k} = {\hat{x}}_{k}^{-} + G_{k} (y_{k} - {\hat{y}}_{k}) \\ P_{x_{k}} = P_{x_{k}}^{-} - G_{k} P_{y_{k}} G_{k}^{T} \end{array}