Simulate change in inflation target

[jpfeifer]

Essentially, you can do the same structure as

Asymmetric responses in a perfect foresight model

Did you mean to say, “If you don’t make sure the \bar{ \pi} moves with the change in the inflation rate…”? Because \bar{ \pi} is already the target, yeah? And thus, your reply sounds like, “if you don’t make sure the target moves with a change in the target…” So what I have in my model is something like this. Everything is the same in the initial and endval sections, except target and steady-state inflation rate (inflation_rate). The model is non-linear. var Y C ...; varexo target; paramet…