Dear all,

Suppose that my model has a monetary policy news shock \sigma_{\xi}\xi_t where \xi_t \sim N(0,1) and \sigma_{\xi}=0.008. If I want to generate a “pure” policy news shock of 25 bp each quarter, is it correct that I modify the news shock example code as follows?

```
shock_matrix(1,strmatch('eps_z_news',M_.exo_names,'exact')) = 0.0025/0.008;
```

In addition, would the answer be different for first-order and higher-order approximations? Many thanks for your kind help.