Questions about financial accelerator


#1

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)


#2

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.


#3

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.
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