Monetary New Keyesian Model

Hey folks,

I have a very simple monetary model. I solved analytically for the steady state. But I always get the error, that Dynare could not find the steady state. Could anyone please help me?

The model is taken from this lecture: … cture3.pdf

The problem is solved, when I use a log-linearized version. Why?

All best,
moneywithcapital.mod (2.03 KB)

Okay, I found the mistake by myself. First, in the Taylor-Rule for the monetary authority, the PI+1 have to be just PI. Second, the steady state for B and TAX was wrong. If one of you is interested in the right code, just ask.