Basic New Keynesian model with flexible price I would like to know what would be the response of variables in the Basic New Keynesian model but with flexible prices (ie not with Calvo pricing). For example I have troubles to see how having flexible prices will matter for a productivity shockk or for a decrease in interest rate of the central bank.
I think what you are looking for is a standard RBC-model. Because the main step, going from RBC to New Keynesian, is to include Calvo pricing among other things. This is covered in many textbooks like Gali's, where he first introduces the RBC model and then moves on to the New Keynesian setup.