Dear Professor Pfeifer,
When I running the code of the Dynare, I’ve got a strange IRF picture like the attachment.
Could you please help me figure out what kind of problem might it be in the model?
Any reply will be appreciated. Thank you very much.
You need to provide more explanations if you expect to obtain a response… What is the model? How did you solve the model? What is the approximation order?
Best,
Stéphane.
That being said, oscillating behavior like this is almost always a timing problem that results in a complex eigenvalue.