Hello,
I have a Dynare code for an open-economy model (see attached). I am trying to understand the effects on determinacy of targeting the exchange rate versus inflation. Strangely, the “dynare_sensitivity” command is giving me the inverse of the correct determinacy region (i.e. determinate where indeterminate and vice-versa). I usually code determinacy graphs myself so don’t have much experience with this on Dynare. Could you please explain what the issue is? I think I am missing something fairly obvious.
Thanks!
K2023_DOLLAR_STAB_POLICY.mod (5.2 KB)