solving monetary (miu) models with linearized euler equations: method of undetermined coefficients

This paper attempts to solve a benchmark money in utility model by first order taylor approximation to the policy function. after a brief summary of recent development in first order taylor approximation in solving dynamic stochastic general equilibrium models, we choose sidrauski’s money in utility model as a standard model and follow the approach proposed by uhlig [1] to solve for the recursive law of motion at first order.