# Monetary Policy framework

Hello all

I have framed a DSGE model for Indian Monetary policy framework. Could someone tell me how do you determine the parameter values and steady steady values to start with , in dynare.

when I randomly added the parameter values and steady state values, I get the following error :

dynare apica.mod
Using 64-bit preprocessor
Starting Dynare (version 4.6.1).
Calling Dynare with arguments: none
Starting preprocessing of the model file …
ERROR: apica.mod: line 1, cols 32-34: syntax error, unexpected INF_CONSTANT

Error using dynare (line 282)
Dynare: preprocessing failed

Without the mod-file it is impossible to tell. But it seems you have name something Inf, which is not allowed.

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apica.mod (3.3 KB)

Sir , please find attached the mod file. I am receiving the following error:

dynare apica.mod
Using 64-bit preprocessor
Starting Dynare (version 4.6.1).
Calling Dynare with arguments: none
Starting preprocessing of the model file …
ERROR: apica.mod: line 66, col 66: character unrecognized by lexer

Error using dynare (line 282)
Dynare: preprocessing failed

Hello, you can locate the ERROR in your mod file. Look at the line 66, and column 66, you are using Expectation_operator which is not necessary in your MOD file. I suggest you to double check your equations in the MOD file.

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Understood sir . I shall rework on these again. Thank you very much .

Sir, there is this paper by the Central Bank of Brazil whereby they have used expectation operator in their equations. 1-s2.0-S026499931200260X-main.pdf (1.4 MB)

This is the paper that I have referred to for the equations. They have used expectation operator in the equations and done the analysis in dynare.

1. Dynare only recognizes round brackets, not curly are square ones.
2. There is no Dynare command Expectation_operator, only Expectation (see the manual) and you cannot use it multiplicatively.
3. There is no symsum in Dynare.

Thank you for your constant guidance , Sir.

I shall thoroughly go through the manual.

1. I had to use submition in the equation and somewhere on the forum I read that it is coded like this .

Sir

Could you please guide me how do we write summation sign in dynare . It used symsum for that . Read somewhere online.

Thank you very much. Grateful.

Regards

You need to write out the sum.

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Hello, I can suggest you to write down the equations as you see them in the paper you mention.
As Johannes says, write down the whole summation, and use only parentheses, no braces or brackets. Also finish each equation with a semicolon, some of them were missing as well in the MOD you posted time ago. You can consult the Dynare guide in link
I can have a look at the MOD file when you are done with that if you like.

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Thank you so much for replying. I shall study the Dynare manual link , rework the equations and share with you.

Grateful.

Regards

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1. Could someone please tell me how do we count the column number in the syntax error ?
2. The sum or summation commands both aren’t acceptable in dynare. Any solution for the same please?

Thank You .

1. Text editors like Matlab usually show the column.
2. As I wrote:

i.e. replace the sum operator by its definition.

1. Sir I did not understand what you meant by saying ’ replace sum operator by its definition’. Please help me understand. You mean sum it manually in excel file and then use it ?
2. I am facing the following error :
Starting Dynare (version 4.6.1).
Calling Dynare with arguments: none
Starting preprocessing of the model file …
ERROR: apica.mod: line 69, col 190: syntax error, unexpected ‘;’

Error using dynare (line 282)
Dynare: preprocessing failed

How do I understand what col 190 is in the row 69 ?

1. I have been reading the ref manual provided by dynare daily and thoroughly, even then I feel on the job training and getting feedback and help from you is helping me learn and implement better. so thankyou very much for always replying. Eapica.mod (3.3 KB) xtremely grateful.
1. Simply write out the sum. For example, \sum_{i=0}^2 2 ^i=1+2+4. The latter can be entered in Dynare.
2. The right bottom corner of Matlab shows line and columns:

In your case, the problem is a bracket in that line that never closes.
3. There is still