Hi professor pfifer,i have trouble with comparison of two model.i have a model that its monetary policy is mccullam rule,and other model is taylor rule.all things of two model are same but for the monetary policy equation.
My question :how can i compare these two model irfs?and i want to say that when we have different monetary policy,results how change?
Very thanks.
I am not sure I understand the question. You would simply compute the objects of interest you have in mind (IRFs, welfare etc.) and compare the two models in that regard.