I currently try to implement the hybrid adaptive/rational expectations NK model from Gertler (2017) into Dynare: https://www.nber.org/papers/w23707.pdf
I have problems to produce appropriate impulse responses. I have attached my code. Can anyone see what is wrong with it? Dynare fails to solve the perfect foresight model but still produces plots. And the impulse responses are weird, I have implemented a shock to the natural interest rate of -0.025, but the impulse response for the natural interest rate only shows a decrease of -0.01 in the first period.
Thank you for your time!
adaptive_nk_fg1.mod (1.4 KB)