Hello, I am working on a two country DSGE model on Dynare (two goods, one asset).
I am working on a nonlinear model, and I have eliminated prices for stationarity.
However, the model still seems to be nonstationary because of nominal exchange rate between the two currencies. In that case, how can I fix the problem?
I appreciate your help and advice. Thank you.
DSGE_Corsetti.mod (5.6 KB)