# In order to give a shock to loan interest rates, can the monetary policy equation be deleted?

**URL:** <https://forum.dynare.org/t/in-order-to-give-a-shock-to-loan-interest-rates-can-the-monetary-policy-equation-be-deleted/18798>\
**Category:** General DSGE Modeling\
**Created:** [28 August 2021 10:06 UTC](https://forum.dynare.org/t/in-order-to-give-a-shock-to-loan-interest-rates-can-the-monetary-policy-equation-be-deleted/18798 "2021-08-28T10:06:06Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![wangshiye](https://forum.dynare.org/letter_avatar_proxy/v4/letter/w/48db29/32.png) [@wangshiye](https://forum.dynare.org/u/wangshiye)\
**Post date:** [28 August 2021 10:06 UTC](https://forum.dynare.org/t/in-order-to-give-a-shock-to-loan-interest-rates-can-the-monetary-policy-equation-be-deleted/18798/1 "2021-08-28T10:06:06Z")

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Dear Professor jpfeifer;  
I am working on a real estate model recently. My model includes patient families, non-patient families, entrepreneurs, retailers, and bank intermediaries. I want to give a shock to the loan interest rate of non-patient households, so I need to delete the central bank and monetary policy equation. Is this feasible?

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [29 August 2021 16:03 UTC](https://forum.dynare.org/t/in-order-to-give-a-shock-to-loan-interest-rates-can-the-monetary-policy-equation-be-deleted/18798/2 "2021-08-29T16:03:16Z")

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That’s impossible to tell in this generality. But I doubt that you will be correctly closing the model in this case. What will determine inflation? Or is this a real economy?