Hi Dynare team,
I think that I spotted a bug regarding discreationary policy in the latest stable version 6.1 of Dynare. Attached, you will find a simple NK model. While commitment works fine (however, if you want to evaluate the policy, the value of the planner objective function is always zero; another bug?), there is an error when simulating discretionary policy. This error does not occur in Dynare 5.5 or the latest unstable version of 7.0. Can you check that, please?
RANK.mod (730 Bytes)