I am a student in STU.
When I am reading the paper [ Gali&Monacelli2002 Monetary Policy and Exchange Rate Volatility in a Small Open Economy ] and its dynare code, I found some problems.
As we can see below, the code lose something which have written in the fomular. Could someone tell me the reason why the code do not copy the fomular written in paper completely?
Thanks for advice!
Here is the code
gm.mod (4.4 KB)