Hi I have a basic question.
Suppose I have a set of log linearized equations from Eggertsson et al. 2019.
Then I type the equations (as it is written) on the model block
For example to type equation (83) I type
Y = (chi*C_b_ss/Y_ss)*C_b + ((1-chi)*C_s_ss/Y_ss)*C_s
_ss represents variable’s steady state values.
So my question is, when I shock the system and I get a value for Y.
What does the value for Y represent? It represents log deviation from the steady state right?