Gali Monacelli 2005

Hello! I am trying to replicate the SOE Gali Monacelli 2005, and using this mod file as a guide

Gali_2015_chapter_8_nonlinear.mod (9.7 KB)

It says that:

  • When the preprocessor variable FDIT is set 1, it replicates Figure 8.1. For each monetary policy rule, it allows
  • replicating the results from Table 8.1.

What are you referring to with this? I managed to run the model, but the only IRF that does not match Figure 8.1 is the nominal interest rate.

Thank you!

I don’t have the book right now. Can you please explain the problem in more detail.