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 4
Long-run limit of optimal policy with commitment maximizing present value welfare