Deterministic simulation high frequency response at end of shock

[jpfeifer]

Simplest NK model with capital (nonlinear)

There is nothing too unusual here. Your shock is a one-time one without persistence. It is well-known that in most rational expectations models most endogenous variables inherit the persistence of the exogenous process. That is the reason we add so many bells and whistles: to increase endogenous propagation.

should be relevant.