Problems generating IRFs when r is fixed exogneously


Hi Prof,

I would like to know how I can manually generate the IRFs when nominal interest rate is fixed at an exogenous leve.

I simply set r=exogneous level(say 0.625) in the model block, while the Dynare generated errors as below:

Reference to non-existent field ‘irfs’.

Error in money1 (line 556)

Error in dynare (line 235)
evalin(‘base’,fname) ;

Please could you help me fix it?
money1.mod (6.5 KB)


Your noprint option suppresses the error message

Error using print_info (line 45)
Blanchard Kahn conditions are not satisfied: indeterminacy

As is well known, a permanent interest rate peg leads to indeterminacy.