Dear all,

I was trying to to implement a forward guidance shock (interest rate = 0) for four periods. It is a two country DSGE model and only domestic country follows forward guidance. I can solve the model with stochastic and deterministic simulations, but I cannot solve it when there is a forward guidance shock. I tried to follow the example of @jpfeifer (NK_linear_forward_guidance.mod) but I have the following error messages

**Unable to perform assignment because the size of the left side is 4-by-1 and the size of the right side is 4-by-0.**

**Error in csolve (line 80)**

** grad(:,i) = (feval(FUN,x+tvec(:,i),varargin{:})-f0)/delta;**

**Error in DGNT (line 366)**

**[x, errorflag] = csolve(‘distance’,start_value,[],1e-6,500,shock_name,target_value,target_name,M_,options_,oo_);**

**Error in dynare (line 235)**

**evalin(‘base’,fname) ;**

Thank you for your help.

Best,

Guido Traficante

DGNT.mod (5.1 KB)