Dear Community,
I am programming a New Keynesian Model with bounded rationality. I want to find the Optimal Simple Rules. Is there any similar model to see how OSR’s can be programmed or any code I can check?
Thanks in advance
Dear F.S89,
Some papers and respective codes for optimal rules under model uncertainty could be found on the page of Prof. Volker Wieland (https://www.imfs-frankfurt.de/en/chairs/prof-volker-wieland/research-and-publications/all-publications.html).
Additionally, Dynare forum is generally a good reference for the Optimal Simple Rules, since there is a routine within Dynare for their calculation.
When it comes to models with bounded rationality, it depends on what kind of friction you want to introduce. Within the MMB, we have adaptive learning models, as one way to deviate from full information rational expectation agents assumption.
Hope this helps.
Best regards
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