Leith, Campbell; Moldovan, Ioana; Rossi, Raffaele - In: Review of Economic Dynamics 15 (2012) 3, pp. 416-435
In this paper we consider the implications of habits for optimal monetary policy, when those habits either exist at the level of the aggregate basket of consumption goods (`superficial' habits) or at the level of individual goods (`deep' habits: see Ravn, Schmitt-Grohe, and Uribe (2006))....
