Implementing Forward Guidance


I’m relatively new to Dynare. I would like to know whether there’s a sample code to analyze forward guidance in a basic New Keynesian model. For example, suppose that the monetary authority announces that the real interest rate will be lower by 1 percent for a single quarter five years in the future, but maintained at the natural real rate of interest (or zero) in all other quarters. For this kind of a simple setup, do we have any example implementation from where we can get some quick insights. I couldn’t find any paper related to forward guidance in the macro model database as well.

Thanks so much!

I am not aware of a forward guidance model. NK models are e.g. at