Dear professor,
I am new about dynare, and I have encountered a steady state problem when replicating the VMD model(a model with shadow banking sector).
I have no idea how to calculate the steady state of omegabar. Would you please help me out?
Thank you so much.
You need to provide more information here. what does VMD stand for? What is omegabar? What is the problem?
Dear professor,
I’m so sorry that I did not make it clear.
VMD means (Un)anticipated Monetary Policy in a DSGE Model with a Shadow Banking System written by Fabio Verona, Manuel M. F. Martins and Inês Drumond.
Although I could see the code of this paper in the Macroeconomic Model Data Base, yet I cannot find the process of steady state solving.
I have no idea how to calculate the steady state of omegabar in this paper.
The attachment is the code of this paper.
Thank you!
US_VMDno.mod (21.4 KB)