one.zip (60.3 KB)
First time here!
I am trying to study the effects of some fiscal policies on the New Keynesian model, based on Veronica Guerrieri’s paper Cao_et_al-2020-SSRN_Electronic_Journal.pdf (1.2 MB) (starting from page 33) for the analysis of Covid-19’s impact on the macroeconomic scenario.
I considered the simplest fiscal policy: a lump-sum transfer in the contect-intensive sector. However the results I obtained are quite weird, all near to 0 and a negative interest rate.
Could you please go through and trying to help me? Thank you so much.