Shocks for IRFs in a third order approximation

Stochastic simulations
3
  1. In principle, this can happen depending on the endogenous feedback. See the discussion at Positive monetary policy shock with nominal interest rate falling?
  2. Your shock volatilities of 100 percent seem totally off. That might explain your weird results. Have a look at the thread at IRFs analysis when std of shocks where calibrated
  3. Please upgrade to Dynare 5.2. Use
    sss.m (1.4 KB)
    irfsss.m (1.9 KB)
    benchmark1.mod (13.3 KB)
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