Schmitt-Grohé, Stephanie; Uribe, Martín - 2021
whereby the nominal interest rate is set as a function of output and inflation, and taxes are set as a function of total …. Our main findings are: First, the size of the inflation coefficient in the interest-rate rule plays a minor role for … welfare. It matters only insofar as it affects the determinacy of equilibrium. Second, optimal monetary policy features a …