Unusual IRFs to Monetary Policy Shock - SOE NK Model

Stochastic simulations
1

Dear all,
I am working with a small open economy New Keyensian Model, with tradables and non tradables.
I have produced some IRFs after a classic monetary policy shock and I am getting very unusual IRFs - in particular real (and nominal ) interest rate are not reacting as they should.
I cannot spot any clear error in the Taylor rule or in another equations, and I was wondering if somebody could help me in finding the mistake.
Thank you very much for your help!

try
try1149×981 100 KB

par.mat (1.4 KB)
nk_open_TANK.mod (8.3 KB)

2

You need to understand why your model does not feature more endogenous propagation. Usually, shutting off all unnecessary features is a first step.