Hello everyone,

I wanted to ask how to read IRFs interpretation from shocking the steady-state. Do I read that there is a 15 bps shock as I am multiplying by the standard error?

Is reading “stderr 1” when “sig_log_pi = 1” as 1% shock and

reading “stderr 1” when “sig_log_pi = 0.0015” as 15 bps shock correct?

Furthermore, `sig_log_pi=1 and var e_log_pi; stderr 0.0025`

equivalent to `sig_log_pi=0.0025 and var e_log_pi; stderr 1`

? Both are interpreted as 100 bps shock?

```
var log_pi;
parameters sig_log_pi;
varexo e_log_pi;
sig_log_pi = 0.0015; rho=0.95;
model;
log_pi = rho*log_pi(-1) + sig_log_pi * e_log_pi;
end;
shocks;
var e_log_pi; stderr 1;
```