Ramsey optimal policy with perfect foresight

Perfect foresight simulations
1

Dear all,

I am trying to conduct a Ramsey optimal policy exercise with a large shock and a medium model. The model can be solved well without optimal policy ( even for the large shock). I am not sure if I made any mistake in doing the Ramsey part. The model is taken from the lecture by Willi(The Perfect Foresight Algorithm | Willi Mutschler) so I am pretty sure everything is correct.

Thank you so much for your help
nk2co_common.mod (25.8 KB)
Ramsey_model.mod (1.4 KB)

2

Your steady state file was not conditional on the instrument. Use
nk2co_common.mod (25.8 KB)
Ramsey_model.mod (1.4 KB)

Now the issue is that your steady state interest rate seems to be hard-coded in the rest of the model.