I’m trying to implement a monetary policy news shocks in the NK model of Gali (2008). when implementing the shocks for news 1, 4 and 8 periods ahead based on the literature I should have a high response of the main variables the further ahead is the sock. But in my simulation I’m just getting the same response but delayed.
So I’m wondering why I don’t have the expected response as in the literature ? I attached my code and the main IRF I had
fig1.fig (89.6 KB)