Jagged edges irf

I’ve already generated the impulse response plot, but I’ve noticed that it looks a bit odd, with some jagged edges. It seems to descend below zero before rising above zero again and then descending once more.I’d like to inquire about the general reasons that could cause such a pattern in the plot.

There are two possibilities:

  1. There is a timing error somewhere that causes strange dynamics.
  2. Your model features complicated endogenous propagation.