The files in this directory generate the final results 
in Chari, Kehoe, and McGrattan, ``Can Sticky Pice Models
Generate Volatile and Persistent Real Exchange Rates?''

The codes DRIVER.m and DRIVER_S.m are the main routines
and are written for Matlab.  Driver.m generates results 
for cases with shocks scaled to hit the right volatility 
of output.  Driver_s.m uses smaller shocks to check the 
linearity assumption.  (NOTE: Recently, Matlab has added
a routine "driver" to its set of built-in functions.
To use our code, simply rename it.)

Users can edit the codes to run their own cases.  See
the comments at the top of DRIVER.m for details on what 
to do.

NOTE: the naming convention for the main subroutines 
in this directory is as follows:

     is cm em sw 1 _ ms .m
     |  |  |  |      |
     |  |  |  |      multiple shock 
     |  |  |  |  N=1 case
     |  |  |  sticky wages
     |  |  exogenous money
     |  complete markets   
     international sticky

Replace cm by im to get the incomplete markets model.
Replace em by tr to get the model with a Taylor rule 
for Fed policy.  Drop the 1 for all N>1 cases.
Drop the sw from the name to get the sticky price model.
Drop the _ms to get the money-shock-only model.
In all cases the first order conditions are given in 
res_<same name>.m or res_n<same name>.m.  The res_n*
files are checks on my algebra. 

See our technical appendix for details on the computation
for each of our examples.


Ellen McGrattan
July 2001