Hi!
I am not sure whether my Log-linearization correct or not.
The equation:
Could anyone please tell me whether the Log-linearization version like this:
R = phi*R_star_ss^(gamma) * (R_star + S(+1) - S) * gamma;
Thank you very much!
No, the steady state should cancel on both sides to obtain
\hat R_t=\gamma (\hat R_t^*+S_{t+1|t}-S_t)