I want to make an optimal monetary policy evaluation of a non-cashless model economy, with various sources of real and nominal frictions, and even a second monetary policy instrument. I know some literature like Galí (2008-2015), Walsh (2017) books, some class notes like Sims (2017), etc. Nevertheless I don’t know if it’ll will work in a model of my own, since in those cases a PC+IS+TR+cashless (thus linearized) economy is assumed. Then, do you recommend me to review in depth works as such, or is there a more general reference that I can take to make an appropriate OMP analysis and skipping the mentioned literature?
Thanks!