Edge, Rochelle M.; Laubach, Thomas; Williams, John C. - Federal Reserve Bank of San Francisco - 2007
Rochelle M. Edge, Thomas Laubach, and John C. Williams ∗
May 30, 2008
Abstract
Thispaperexamineswelfare-maximizing monetary … with
instantaneous full adjustment of quantities and prices to shocks. To make the analysis
tractable, we abstract from …)
where ǫA,t is an i.i.d. innovation. We abstract from trend growth in productivity.
2.2 Preferences
Households own shares in …