Dear all,
I am currently trying to replicate the DSGE model in “A Macroeconomic Model of Central Bank Digital Currency” from Pascal Paul, Mauricio Ulate and Jing Cynthia Wu. I am a beginner to dynare and this is the very first model I try to code. I have some problems finding the steady state. In the Appendix B.9 of the paper the steady state is simplified to a system of 12 equations and 12 variables. I already managed to solve 4 of them by using a fsolve function to solve for epsilon_d. This left me with a system of 8 equations and 8 variables. I tried to use a fsolve to solve this system, but I can’t find a solution. I used the values I saw at papge 78 and 79 of the paper as initial guesses for the steady state, so I would think that they are reasonable. Is there any advise on what to do in such a situation? My question only concerns the steady_state_helper file but I also attach my mod file and the eps_steady_state_helper file. I am very sorry if my code is a mess.
steady_state_helper.m (2.0 KB)
cbdcSSm.mod (5.1 KB)
eps_steady_state_helper.m (564 Bytes)