Casares Polo, Miguel2016-05-102016-05-102007https://academica-e.unavarra.es/handle/2454/20643This note reports the rate of inflation that minimizes the mark-up of prices over marginal costs in the steady-state solution of a monopolistic competition model with either Taylor (1980) or Calvo (1983) pricing. The minimal mark-up is always found at a positive and low rate of inflation for any sensible parameter calibration. Actually, the rate of inflation that minimizes the mark-up is very close to ratio between the real rate of discount and the Dixit-Stiglitz elasticity. This result is robust to altenative sticky-price specifications.12 p.application/pdfengCC Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0)Monopolistic competitionSticky pricesMinimal mark-upinfo:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/openAccess