Woodford, Michael; Benigno, Pierpaolo - Society for Economic Dynamics - SED - 2004
We consider the appropriate objective for monetary stabilization policy in a canonical “new Keynesian†model with staggered pricing of the kind proposed by Calvo (1983), but with a complete DSGE structure of the kind presented by Yun (1996) or Woodford (2003). It is shown that under...