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PDF-wheretjkPt=Ptk.Thatoptimalityconditioncanbelog-linearizedaroundazer PDF document

1 1fmctk1 tk Etfpt1ptg1 1 1 1fmct1 t2wherefmctmct tand tlogt t1Noticethatinthepresenceofindexationexpectedfuturein135ationhasamorelimitedimpacto

1+ (1)fmct+k+(1 )t+k= Etfpt+1ptg+(1 )(1 ) 1+ (1)fmct+(1 )t(2)wherefmctmct+ tand tlogt t1.Noticethatinthepresenceofindexation expectedfuturein‡ationhasamorelimitedimpacto

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