Hi, I am new to Dynare. I have a problem in getting the steady state with a monetary policy of Taylor rule.

When I set the monetary policy in constant money supply, I got a steady state solution. However, it said “Impossible to find the steady state” when I changed to a Taylor rule. My understanding is when switch the monetary policies, Taylor rule in the steady state is the same as Euler equation is the steady state. Compared to the constant money supply, does it mean there is one less steady state condition? Since less conditions than unknowns, the stead state is indeterminate. Or the nominal price can be inflated to any arbitrage level.

Did I understand correctly?

What are the ways to resolve the problem, beside use logarithm to get the deviation?

Cheers!