Optimal Monetary Policy in a Model with Recursive Preferences
Singapore Management University
New Keynesian model with Epstein-Zin recursive preferences, Calvo sticky prices, and optimal monetary policy analysis
intermediate firms: monopolistic competition with Calvo pricing; final firms: perfect competition with CES aggregation
Table 2 p.15
Standard Taylor Rule (psi_pi=1.5, psi_y=0.5)