Fluctuating IRFs

[mehranmahmoudi]

hope_version1.mod (43.8 KB)
HI,this is my dynare code.its irf is fluctuating like random process.can you help me.
thanks.

[jpfeifer]

See

Why the IRFs are so abnormal? Is it either normal or not?

Those IRFs indeed look weird. They look like oscillations due to a complex eigenvalue. It’s either a timing problem or a wrong parameter setting (often in feedback rules).