I want to do estimation in discretional and ramsey policies. but in the model block I have to remove the interest rate rule /taylor rule/. How can I do the estimation and give interest rate shocks without the rule?
I don’t think this is possible. If monetary policy is chosen to be optimal, you cannot add shocks, because optimality would require to simply undo those shocks by adjusting the instrument accordingly.
Dear Mr. Pfeifer. But is it possible to estimate the model in Dynare under discretion and commitment without having monetary policy shock?
That is a tricky issue. It should be doable under commitment. see https://git.dynare.org/Dynare/dynare/issues/1173
Discretion is not yet implemented.