# An infinity of steady states with Taylor rules **URL:** \ **Category:** Steady state\ **Created:** [16 July 2014 05:29 UTC](https://forum.dynare.org/t/an-infinity-of-steady-states-with-taylor-rules/4026 "2014-07-16T05:29:38Z")\ **Posts on this page:** 1\ **Showing post:** 1
**Author:** ![superztt](https://forum.dynare.org/letter_avatar_proxy/v4/letter/s/b5e925/32.png) [@superztt](https://forum.dynare.org/u/superztt)\ **Post date:** [16 July 2014 05:29 UTC](https://forum.dynare.org/t/an-infinity-of-steady-states-with-taylor-rules/4026/1 "2014-07-16T05:29:38Z")
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! --- _[View the full topic](https://forum.dynare.org/t/an-infinity-of-steady-states-with-taylor-rules/4026)._