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
Section 4.2, Fig. 9
Ramsey optimal steady state implies zero inflation
Authors derive Ramsey optimal monetary policy as main contribution; zero inflation is the Ramsey steady state