I wrote a dynare code and it runs but I see this oscillating movement in some IRFs!
I don’t know what is wrong…I checked the FOCs and the log linearization…I can’t find the error!
I attach the code here…
Thank you in advance!group_7fabi.mod (3.6 KB)
You have a complex eigenvalue that should not be there. Usually, this is caused by a timing error or a sign error in the model.