Dear dynare, I used the global optimizer cmaes to find optimal policy parameters, and the parameters’ LowBounds is -500, UpBounds is 500, and I got optimal parameters and run dynare file, the IRFs were explosive, I saw the paper use the restrictions :
(max(-oo_.irfs.R_eps_s+R)>1 | max(oo_.irfs.R_eps_s+R)>1 | min(-oo_.irfs.R_eps_s+R)<0 | min(oo_.irfs.R_eps_s+R)<0)
and use this restriction to get optimal parameters then would not lead explosive, I’m confused,
Please give me some help. Thanks so much.