Hello all,

I am trying to replicate the model by Sims and Wu (2021) “Evaluating Central Banks’ Toolkit” in Dynare and was wondering why in this non-linear model some variables are taken to the exponential, but others are not? Is there any specific rule behind it? (see screenshots of the code attached)

The second thing that confuses me is that in equation 34 output Y is not taken to the exponential but in equation 37 it is (see attachment 2).

I would be grateful for any hints.

Kind regards,

Daria