Generating real persistent effects from nominal rigidities

Dynare contributions and examples
1

Hi everyone,

relatively new Dynare user here and I am trying to reproduce the model in Jeanne (1997) Generating real persistent effects of monetary shocks: how much nominal rigidity do we really need?. However I am having some problems transforming it into code, since I don’t know how you would write the more difficul equations such as (22).

I was wondering if anyone here has worked with this model before and if you would be willing to share it. Any helpful information would be immensely appreciated, since at the moment I am pretty much stuck.

Thank you!

2

The equation you mention look like a standard pricing equation in New Keynesian models. Have a look at https://github.com/JohannesPfeifer/DSGE_mod/blob/master/Gali_2015/Derivation_Recursive_Pricing_Equation.pdf and the associated mod-file at https://github.com/JohannesPfeifer/DSGE_mod/blob/master/Gali_2015/Gali_2015_chapter_3_nonlinear.mod