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Nonlinear Solver

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Nonlinear Solver

Postby ecrgap » Mon Oct 11, 2010 11:30 am

Hi all,

I was wondering whether the nonlinear deterministic solver can solve a dsge model where the Cenrtal Bank follows a threshold interest rate rule. Say a rule, where the CB reacts to inflation if and only if it exceeds 2%. Is there any example available?

Thanks a lot in advance.
ecrgap
 
Posts: 13
Joined: Mon Jul 05, 2010 8:34 pm
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