I am also using this great add-in to do a favar in eviews. I am trying to update the analyses of Bernanke et al (2005) and I am just wondering if anyone knows, why the program also standardizes the federal funds rate? I get that the variables for the principle component analysis have to be standardized but I dont think that this is should be the case for the ffr. Or did I just didnt get the concept?
Furthermore it seems like since 2001 there is a unit root in the federal funds rate, which persists even when we use the shadowrate instead. Does anyone know how to handle something like this in the VAR?
Help would be greatly appreciated

Ben