Feedback mechanism in a DSGE model

Hi, I have this equation: PXT = PDT - S + PNB in my model and PNB \sim AR(1). After a PNB shock, I was expecting PXT to go up, but it rather decreased. I am thinking there is some sort of a feedback mechanism in the model causing this. Thus, although the initial impact is positive (as predicted by the equation), there is some feedback mechanism (that I should look for) that is causing an overall decrease in PXT. This is not strange, right? Or is it? Many thanks for the reply.


It can happen. An example is the standard NK model. See Positive monetary policy shock with nominal interest rate falling? - #4 by jpfeifer