RDP 2011-02: Long-term Interest Rates, Risk Premia and Unconventional Monetary Policy
Equation (A7)
m
c
t
=
(
χ
+
ϕ
2
)
y
t
−
ϕ
1
y
t
−
1
−
β
ϕ
1
E
t
y
t
+
1
−
ϕ
0
a
^
t
−
(
1
+
χ
)
z
^
t
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