Dear Johannes,
could you please clarify what kind of welfare analysis can I generally perform with a log-linearized model? Since the model is linear I cannot do second order approximation, but can I calculate optimal Ramsey policy then?
Thank you!
Dear Johannes,
could you please clarify what kind of welfare analysis can I generally perform with a log-linearized model? Since the model is linear I cannot do second order approximation, but can I calculate optimal Ramsey policy then?
Thank you!