Questions about financial accelerator


Hello , everyone:
I am working on a paper about cooperation about macroprudential and monetary policy. Because there are something wrong in the model, so I tested financia accelerator first , but I found the plots is weired, I thought tight monetary induce production capital is decling , not rising. I wonder if there is something wrong in my tested code. Here is my tested .mod code, I hope someone can help me, thank you!M3.mod (5.0 KB)


That is hard to tell. Does the model work as expected without the financial accelerator? Also, my reply at

applies here, just with an opposite sign.


thank you for your reply ,professor.
I have used the financia accelerator code from the fabio verona code in the paper of Christiano, Motto and Rostagno (2010) risk shocks. But I found when I give a bank benchmark interest rate positive shock to financial accelerator, the production capital is rising, not decling, so I wonder If I was wrong when I used financia accelerator part, not considering the other part.