Log linearized and non-linearity in one model

  1. Why do you need to linearize for Calvo? Usually, there is a closed form recursive representation. See e.g. DSGE_mod/Derivation_Recursive_Pricing_Equation.pdf at master · JohannesPfeifer/DSGE_mod · GitHub
  2. See Mix of equations in levels and log linearized form - #3 by jpfeifer
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