Dear professor,
I tried to replicate the plots of chapter 3 of Gali (2015) by running your replication code. jp.mod (10.9 KB)
And I have a few questions:
I suppose what’s inside the two dollar signs i.e. latex name and the so-called “long names” are just for our own reference right? it’s nothing to do with running the model or producing any output.
When I generated the plots following a discount rate shock or a productivity shock (both under a money growth rule), I noticed that the variable nominal money supply does have responses, which is distinct from the plots from Gali (2015) where they are horizontal lines (no responses at all).
Could you please explain what caused the differences?
Could I confirm with you that by defining those composite parameters, we do not need to declare them in the parameter block? Obviously, this has created problems in LaTeX output. How am I supposed to deal with this?