I have a simple New Keynesian model with a price level targeting rule (mod file attached). I have code which solves the model through Dynare, and then loads the results file so that I can use the oo_.dr.ghu and oo_.dr.ghx matrices to perform a simulation.

With the policy rule written as it currently is in the file,

nomR = rho_r*nomR(-1) + (1-rho_r)*gam*P(+4) + v ;

things are fine. I can extract the ghu and ghx matrices as described in the documentation. Suppose I change the rule so that it responds to expected inflation 8 periods out instead of 4:

nomR = rho_r*nomR(-1) + (1-rho_r)*gam*P(+8) + v ;

In this case the ghu and ghx matrices are gone from the results file. Defining auxiliary variables manually does not resolve things either.

Any clues to this mystery? How can I get the ghu and ghx matrices for the latter case?

simple_PLT.mod (756 Bytes)