S.F. Fakhrehosseini - Department of Business Management, Tonekabon Branch, Islamic Azad University, Iran
Meysam kaviani - Department of Management, Aliabad katoul branch, Islamic Azad University, Iran

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 [۱] to solve for the recursive law of motion at first order.

DSGE Model, Calibration, monetary models