Abstract
An extension \(\widehat{GL}\) of the symmetry group GL of Sato's universal Grassmannian GM is constructed. The extension plays a similar role to that of the central extension \(\widehat{GL}_{{\text{res}}}\) in the approach of Segal and Wilson to τ functions and KP hierarchy. Our group G contains GLres as a subgroup and the associated τ function is a deformation of the usual τ function, leading to a deformed KP hierarchy. A relation to current algebra of Yang-Mills theory in 3+1 dimension is discussed.
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