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
Section 4 p.11
Nonstochastic Ramsey steady state optimal inflation
Authors report this as the Ramsey steady state inflation rate which serves as the reference for all policy rule comparisons