May I ask? Are there other known parameters that determine the effectiveness of monetary policy in a DSGE model besides the Calvo parameter?

Here is my little issue. I estimate a VAR monetary policy model for my country. In the results, a monetary policy shock is not statistically significant in the IRFs. Other papers find the same. So the question is, why is monetary policy weak? I estimate a DSGE model, and the estimated Calvo parameter is about 0.15. Thus, prices change about every quarter. The model is a quarterly model. So monetary policy is also kinda weak in the estimated DSGE model. Moreover, there is one micro paper for my country that finds that the frequency of price change is even faster…about one month (using some other methodology). So the story here is kinda consistent in the VAR, DSGE, and that micro paper…and even in real life:). When there is an inflation shock, prices just go up in a few weeks.

But my question is whether there are other parameters that can also significantly reduce the effectiveness of monetary policy in a DSGE model? Using sensitivity analysis (one parameter at a time), I have not found a structural parameter like that so far besides the Calvo parameter.

I ask this question because VAR papers that find monetary policy to be ineffective mostly say it may be due to bad and poor institutions, and the discussion sometimes ends there as the VAR is not a structural model. So any reason for the ineffectiveness of monetary policy, in this case, will be speculative, at best.

So my question is; how does a weak monetary policy show in a DSGE model besides via a low Calvo parameter?