Benigno, Pierpaolo; Woodford, Michael - In: Journal of the European Economic Association 3 (2005) 6, pp. 1185-1236
This paper considers the appropriate stabilization objectives for monetary policy in a micro-founded model with staggered price-setting. Rotemberg and Woodford (1997) and Woodford (2002) have shown that under certain conditions, a local approximation to the expected utility of the representative...
