Dear Dynare Team,
after I ran my Dynare code, I observed very small impulse response effects (please find the figure attached).
L is labor hours, C is consumption, W is wages, RD is deposit rate, pi is inflation, YWh is output, pWh is price, and RLoan is loan interest rate. These are impulse responses on the deposit shock.
For me these impulse responses look very small. I did a second order perturbation in Dynare. I did not apply exp to the variables.
When Dynare solved the steady state, I observed some residuals were not 0 for the static equations in the Dynare output, however, Dynare did not produce any error messages.
I would be happy to hear any thoughts/suggestions in this regard.
Thank you very much.