Optimal monetary policy in a New Keynesian model with habits in consumption
University of Glasgow; University of Glasgow; Università di Milano-Bicocca
New Keynesian model with external consumption habits (both superficial and deep), Rotemberg price adjustment costs, and optimal monetary policy analysis under commitment and discretion
monopolistic competition with Rotemberg quadratic price adjustment costs
Table 1 p.421
Benchmark steady state gross inflation rate calibrated to US data 1960:Q1-2010:Q4
Authors describe this as the benchmark calibration used throughout the paper for optimal policy analysis