Dear Prof.Pfeifer:
I derivate firm optiomal price in Gali Chapter 3. But when I read your DSGE_mod/Derivation_Recursive_Pricing_Equation.pdf at master · JohannesPfeifer/DSGE_mod · GitHub,
I don’n know where is the P_{t+k} from in the Foc.
The \Lambda in my case is the real stochastic discount factor. Therefore, you need to make the profits real by deflating them with P_{t+k}