I’d like to estimate a system with the new keynesian IS curve, the new keynesian Phillips curve and the taylor rule. I tried to find the analitical solution first, but i did’t find it. Where can I search for references or examples like that one?
I am sending attached a file by Philip Liu from Australian National University which features both the analytical form and Dynare code sample of a New Keynesian Model with IS and Phiips curve and Taylor rule by Cho and Moreno (Journal of Credit Money and Banking, 2000).
As a matter of fact I am using this model to investigate post-crisis monetary policy effects in Turkey but somewhat have had to suspend it temporarily because I got stuck into a local maximum bound problem.
Hope you don’t have the same problem.
macro_dynare.pdf (103 KB)