RDP 2017-06: Uncertainty and Monetary Policy in Good and Bad Times
Equation
R
t
*
=
R
*
+
β
(
E
t
[
π
t
,
k
]
−
π
*
)
+
γ
E
t
[
x
t
,
q
]
+
μ
s
t
R
t
=
(
1
−
A
(
L
)
)
R
*
+
A
(
L
)
R
t
−
1
+
ν
t
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