Dear all,
I am very sorry to bother you, but I am new to dynare and I was trying to write down a TANK model based on Debortoli and Gali(2017), and to add a forward guidance shock. Attached you can find the codes. I find steady state values but some of them are very strange as Bonds (which should be zero in net supply and I get -4 instead).
Furthermore, the plot is completely flat, while it should show the exogenous shock which happens in period 20 but is announced today, and I cannot fine the mistakes.
Could someone help me?
Thank you very much in advance!
Ludovica
model1.m (255 Bytes) model1.mod (4.5 KB)