Why does the real interest rate decline on impact to a shock to taylor's rule in a New Keynesian Model with capital?

Stochastic simulations
1

Hello,

Please I have run a New Keynesian model with capital and found out that the real interest rate tend to decline on impact to a monetary policy shock. What could be a possible explanation for this?

2

Are you sure the real interest rate decreases and not just the nominal one? What you describe would usually violate the Taylor principle

3

It may have to do with
https://doi.org/10.1016/j.jmoneco.2019.01.024

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