Good Evening,

can someone tell me (or have a hint) how to adapt my code below to simulate an anticipated shock under discretionary policy?
With taylor rule (not implemented here) and commitment / ramsey_policy I can simply change the anticipation horizon from 0 in epsu to 1 in epsu(-1) for example, but with discretionary_policy it (obviously) doesn’t work…

Thank you very much in advance.

forum.mod (650 Bytes)

Thanks for reporting this. It seems to be due to a bug. For a fix, see https://git.dynare.org/Dynare/dynare/-/merge_requests/1767

Thank you for the quick answer&fix!