Optimal Monetary Policy Across Behavioural New Keynesian Models
University of Exeter; University of Surrey; University of Birmingham; International School - Vietnam National University, Hanoi
Four competing NK models: benchmark RE, Euler learning with simple adaptive expectations (EL-SAE), Euler learning with generalized adaptive expectations (EL-GAE), and Gabaix bounded rationality with myopia (MYP). Models feature Calvo price stic
wholesale firms: perfect competition with Cobb-Douglas production; retail firms: monopolistic competition with Calvo pricing
Table 5 p.26
Optimal ZLB Mandate, EL-GAE model, p_zlb=0.05, Π*=1.014