Implementing ZLB in Ireland (2004)

[jpfeifer]

Your constraint is wrong. The ZLB does not bind when r=0 and therefore the interest rate is in steady state. Rather, it can fall by 1-1/beta. See also

OccBin simulation problem

Hi, your constraint is wrong. Instead of constraint = 'i<1-1/beta'; constraint_relax ='i>1-1/beta'; it is better to use the shadow rate within constraints. E.g. constraint = 'inot<1-1/beta'; constraint_relax ='inot>1-1/beta';