it appears there is an error in my steady state, because its just one of my static equations that is non-zero
baseline_script1.m (2.3 KB)
baseline1_ss.m (1.1 KB)
ma.mod (4.4 KB)
ma1.log (3.1 KB)
ms = M - ((1/(1 + P_I)) * M(-1));
with P_I=0
implies that ms
must be 0. But your value is non-zero.
so how do i pin down P_I = o in the steady state calculations
Having 0 net inflation is fine. But then you need to fix the rest of the computations, e.g. ms=0
.