I am trying to draw a policy frontier (or Taylor curve) by assuming loss function as “lambda * var(inflation) + (1-lambda) * var(y)”.
(I was reading a past post which had a similar question.
Computing Taylor curve (efficient policy frontier))
The code that I wrote is:
lambda = 0:0.05:1;
lambda_SS = lambda(SS);
y, infl lambda_SS;
disp('Computation fails for lambda_SS = ’ num2str(lambda_SS)]);
osr_params rhoib piinfl piy;
But, it fails to run.
(ERROR: bank12_test.mod: line 467, col 7: syntax error, unexpected EQUAL
line 467 is “for SS=1:length(lambda);”)
I don’t know why it doesn’t run.
Any helps will be really appreciated.