Flo24
1
Dear Dynare Forum community,

I would like to include a variant of the taylor rule in my model using Contemporaneous Expectations, so:

r = rn + phi_pie * pie^e_t + phi_y * ytilde^e_t

Now my question would be how to realize these Contemporaneous Expectations in Dynare.

Thanks in advance!

With kind regards

Flo24

Flo24
3
The expectation of pie at time t, for example, that I made at time t-1.

Max1
4
Do you mean E_t y_{t+1} or E_{t-1}y_{t+1}?

The first one is already implicitly implemented in Dynare if you write down your equations.

The lagged expectation operator is implemented as `EXPECTATION(-1)(y(+1))`

.

Flo24
6
Thatâ€™s what I was looking for!

Thanks a lot!