I have seen in monetary DSGE models where the “sacrifice ratio” is calculated, this ratio is the loss of product that is generated from the Central Bank’s attempt to control inflation through a Taylor rule (or contractionary measure related with money. But I’m not sure how to make this calculation, and if it would be applicable to other variables, then I’d be very grateful if you could provide me some code example or reference. Thanks!
https://www.imf.org/external/pubs/ft/wp/2013/wp13257.pdf discusses the concept.
Thanks! I greatly appreciate your help.