the attached files replicate figures 3.1, 3.2, 3.3 and 3.4 showed in Gali’s book (Chapter 3).
note that fig 3.4 (response of nominal rate) --> 0, then an approximation error explain the difference with the original graph.
NKM_ch3_f31.mod (2.36 KB)
NKM_ch3_f32.mod (2.56 KB)
NKM_ch3_f33.mod (2.37 KB)
NKM_ch3_f34.mod (2.55 KB)