RBA Annual Conference – 2018 Equation (2)

(1.0 - 0.5 ε) {(π_{t} - \bar{π})}^{2} + (1.0 - 0.5 ε) {(y_{t} - {\bar{y}}_{t})}^{2} + 0.5 {(i_{t} - i_{t - 1})}^{2} + ε {(d_{t} - \bar{d})}^{2}