Inequality and Optimal Monetary Policy in the Open Economy
Description
CODES FOR "INEQUALITY AND OPTIMAL MONETARY POLICY IN THE OPEN ECONOMY" BY SUSHANT ACHARYA AND EDOUARD CHALLE FOR PUBLICATION IN THE JOURNAL OF INTERNATIONAL ECONOMICS ************************************************************************ The codes are written in MATLAB and run in MATLAB 4.2.0.2806996. MATLAB is not freeware and can be obtained from https://www.mathworks.com/products/matlab.html The code also requires the MATLAB Symbolic Math Toolbox Version 24.2 Instructions: 1. Run pics_for_paper.m to generate Figures 1,2,3 and 4. Other functions called by the above scripts: a) makesteady.m : this function computes the steady state of the Ramsey plan in the HANK economy. b) make_steady_RANK.m : this function computes steady states of the Ramsey plan for the RANK benchmark. c) optdynamics.m : this function computes the optimal dynamics in response to an aggregate shock shock in the HANK economy. d) opt_dynamics_RANK.m : this function computes the optimal dynamics in response to an aggregate shock shock in the RANK economy. e) pricestab.m : this function coputes the dyamics in response to shocks in HANK when monetary policy inefficiently implements price stability. F) colors.m : this function assigns names to returns RGB tuples adapted from % http://en.wikipedia.org/wiki/List_of_colors, and is used in plotting curves in all figures.