Attached is a simulated model. My question is regarding the shapes of impulse response of monetary policy shock. Although they have the desired signs, impulses lack the usual hump shape, are magnitudinally small and persist only for a quarter or may be a little more for some variables. However, monetary policy shock explains the bulk of the variation in most variables. Is that a weird result? How can we improve it? Any help is highly appreciated.

Many thanks.

utility_16.mod (10.1 KB)