Logical problem about optimal monetary policy
Posted: Mon Apr 11, 2016 3:55 pmHi,
I have maybe a logical problem: there is a difference between an estimated model/rule and the optimal one.
But the optimal policy procedures described in optimal rule (osr), commitment (ramsey_policy), and discretionary (discretionary_policy) are based on calibrated parameters, not estimated (and even if they are estimated, it is by using a model with a monetary policy rule in order to close the model....)
I ask this question because my calibrated parameters are strongly different compared to my estimated parameters.
I can also load previously estimated parameters as in viewtopic.php?f=1&t=6301
and then running optimal policy features, but I can only run osr.
Finally, the main question is: how can I estimate a model based on the assumption that the central bank is under optimal policy (commitment or discretionary) ?
I wrote estimate, not simulate.
I have maybe a logical problem: there is a difference between an estimated model/rule and the optimal one.
But the optimal policy procedures described in optimal rule (osr), commitment (ramsey_policy), and discretionary (discretionary_policy) are based on calibrated parameters, not estimated (and even if they are estimated, it is by using a model with a monetary policy rule in order to close the model....)
I ask this question because my calibrated parameters are strongly different compared to my estimated parameters.
I can also load previously estimated parameters as in viewtopic.php?f=1&t=6301
and then running optimal policy features, but I can only run osr.
Finally, the main question is: how can I estimate a model based on the assumption that the central bank is under optimal policy (commitment or discretionary) ?
I wrote estimate, not simulate.