Using Dynare to linearize my model


I am trying to find an answer to the following question:

If I use Dynare to linearize my New Keynesian model (using exp()), is the model linearized around a positive steady state rate of inflation, as in the work Ascari and Ropele? Such that trend inflation has distorting effects.


That depends on your setup, i.e. whether you have trend inflation and full indexing.