Notations In Dynare
Posted: Sat Apr 26, 2014 1:37 am
A model with sticky prices usually closes with a taylor rule and in some cases also with a Fisher equation. In taylor rule we usually have variables with BARS like log(Rt/Rt_bar) where Rt is the nominal interest rate. Are we suppose to write both Rt and Rt_bar in our endogenous variable block? What value will Rt_bar take in the initial value box if we know the value or say Rt.
Any help on this will he appreciated.
Any help on this will he appreciated.