Optimal monetary policy in an estimated SIR model
London School of Economics and Political Science; European Central Bank; CMAP, Ecole polytechnique
Health New Keynesian (HeNK) model with SIR epidemiological dynamics where contagion occurs through consumption and labor supply decisions, featuring perfect consumption insurance across susceptible, infected, and recovered household members
intermediate firms: monopolistic competition with Rotemberg price adjustment costs; final firms: perfect competition with CES aggregation
Table 1 p.9
Pre-epidemic steady state inflation rate calibrated for Euro Area