% Matlab File: plotimperbsflexprices.m

%Chapter 7

%CIA model with predetermined exchange rates

%June 2007

%This program is part of the book "Open Economy Macroeconomics in
%Developing Countries" (forthcoming MIT Press) by Carlos A. Vegh. Use of
%this program or modifications thereof should be acknowledged by citing
%this manuscript.  This program is a modification of the original
%King, Plosser, and Rebelo's (1988) programs. I am grateful to Guillermo
%Vuletin for his help in writing this program.  


% This program is to be used after implmbs.m to plot impulse response functions
% Order of variables is: 
% States, exogenous, co-states, controls, and flows
% Date  k  epsilon   lambda    cT  cN   i  e    TB   
%  1    2    3          4      5   6    7   8   9            


%  Program was modified to include the zero value in period zero
%  in the plot

%clg
%time = 1:nir;

time = 0:nir;
[dim1 dim2]=size(IR);
PIR = [zeros(1,dim2) 
       IR];
   
       

figure(1)

subplot(221), plot(time,PIR(:,3),'-',time,zeros(size(time)),'.')
title('Rate of devaluation')
xlabel('time')

subplot(222), plot(time, PIR(:,5),time,zeros(size(time)),'.')
title('Consumption of tradables')
xlabel('time')

subplot(223), plot(time,PIR(:,9),time,zeros(size(time)),'.') 
title('Trade balance')
xlabel('time')

subplot(224), plot(time, PIR(:,8),time,zeros(size(time)),'.')
title('Real exhange rate')
xlabel('time')

    
    
clear time