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    To estimate a base linear rule for the real interest rate with smoothing parameters, under the

    assumption that it adjusts slowly and is a weighted average of its lagged and target interest
    rates, we use the following formula:

    To estimate a base linear rule for the real interest rate with smoothing parameters, under the
    assumption that it adjusts slowly and is a weighted average of its lagged and target interest
    rates, we use the following formula:

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