Simple CIA model with money multiplier

Steady state
1

Dear all,

I can not figure out what is wrong with my equations or anything else that I get the error “The steadystate file did not compute the steady state”. The purpose of , mu which shows up before mb in CIA constraint, is to model money multiplier.
first.mod (700 Bytes)
Thanks in advance :slight_smile:

2

Why should

r = rho;
4

Thanks. It should be r = (1+pi)/beta - 1; right?
and i realized h does not have closed form solution so I used Matlab for it’s steady state value. but again, Dynare can not compute steady state . I don’t know why?
first2.mod (702 Bytes)
h_helper.m (110 Bytes)

5

Your solver for the steady state returns a complex number.