RDP 2017-06: Uncertainty and Monetary Policy in Good and Bad Times
Equation (1)
X
t
=
F
(
z
t
−
1
)
∏
R
(
L
)
X
t
+
(
1
−
F
(
z
t
−
1
)
)
∏
E
(
L
)
X
t
+
ε
t
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