Dear Professor Jpfeifer,
I am building a model based on the Baseline New Keynesian DSGE model described in Jesús Fernández-Villaverde and Juan F. Rubio-Ramírez (2006) and I got very good help from your mod file. I have two questions. 1) in page 9 of the PDF we see: all intermediate goods prices are pti. But when the profit is calculated (F line 221 mod file) there is no price for the intermediate production. May I know why? 2) in calvo pricing (page 13) it is shown that Pi(inflation) is p/p(-1). but in mod file we have pi_ss=1.02. what is the intuition of this equation. Pi is a definition, or it is cleared endogenously within other equations?