33 lines
685 B
Modula-2
33 lines
685 B
Modula-2
//Toy model of Alichi et al. (2015): Avoiding Dark Corners: A Robust Monetary Policy Framework for the United States
|
|
// checks whether lmmcp works with ramsey_model
|
|
|
|
var i y pi;
|
|
varexo e_y e_pi;
|
|
parameters beta1 beta2 beta3 lambda1 lambda2 pi_bar;
|
|
|
|
beta1 = 0.6;
|
|
beta2 = 0.25;
|
|
beta3 = -0.2;
|
|
lambda1 = 0.7;
|
|
lambda2 = 0.1;
|
|
pi_bar = 2.0;
|
|
|
|
model;
|
|
[mcp = 'i > 0']
|
|
y = beta1*y(-1) + beta2*y(+1) + beta3*(i-pi(+1)) + e_y;
|
|
pi = lambda1*pi(+1) + (1-lambda1)*pi(-1) + lambda2*y + e_pi;
|
|
end;
|
|
|
|
planner_objective (pi-pi_bar)^2 + y^2;
|
|
ramsey_model(planner_discount=1.0);
|
|
histval;
|
|
y(0) = -2.0;
|
|
pi(0) = 1.0;
|
|
end;
|
|
|
|
steady;
|
|
|
|
perfect_foresight_setup(periods=50);
|
|
perfect_foresight_solver(lmmcp);
|
|
|
|
rplot i; |