Gomes, O.; Mendes, D. A.; Mendes, V. P.; Sousa Ramos, J. - Money Macro and Finance Research Group - 2007
There is by now a large consensus in modern monetary policy. This consensus has been built upon a dynamic general equilibrium model of optimal monetary policy with sticky prices a la Calvo and forward looking behavior. In this paper we extend this standard model by introducing nonlinearity into...