Optimal inflation persistence: Ramsey taxation with capital and habits
Federal Reserve Board, USA
Cash-credit model with habit persistence in preferences and capital accumulation, featuring Ramsey optimal fiscal and monetary policy with distortionary labor and capital income taxes
perfect competition in baseline; monopolistic competition in extended model with Dixit-Stiglitz aggregator
Table 4 p.1818
No capital, habit (a=0.5), Friedman Rule optimal, second-order approximation