A Primer on Optimal Monetary Policy with Staggered Price-Setting
Federal Reserve Bank of Richmond
Standard New Keynesian model with staggered price-setting (Calvo-style two-period pricing), monopolistic competition, money-in-utility, and no capital. Analyzes optimal monetary policy under commitment and discretion.
monopolistic competition with staggered price-setting; prices fixed for two periods; linear production technology using only labor
Section 3, Figure 3
Optimal steady state inflation rate maximizing steady state welfare with staggered price-setting
Authors identify this as the optimal steady state inflation rate under their first notion of optimal policy (Section 3)