# Zero Lower Bound in loglinearised (by hand) stochastic model

**URL:** https://forum.dynare.org/t/zero-lower-bound-in-loglinearised-by-hand-stochastic-model/4780
**Category:** Dynare contributions and examples
**Created:** [22 June 2015 14:42 UTC](https://forum.dynare.org/t/zero-lower-bound-in-loglinearised-by-hand-stochastic-model/4780 "2015-06-22T14:42:14Z")
**Posts on this page:** 1
**Page:** 1

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### Author: ![nk178](https://forum.dynare.org/letter_avatar_proxy/v4/letter/n/90db22/32.png) [@nk178](https://forum.dynare.org/u/nk178)
#### Post date: [22 June 2015 14:42 UTC](https://forum.dynare.org/t/zero-lower-bound-in-loglinearised-by-hand-stochastic-model/4780/1 "2015-06-22T14:42:14Z")

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Dear all,

I am trying to impose the Zero Lower Bound condition on the nominal interest rate in a stochastic NK model with a financial intermediation sector that I have developed. I have already log-linearised by hand as I need that for my welfare analysis of the model.

As my model is stochastic, I understand that this is not doable as in Dynare you can programme the ZLB only in a deterministic environment. I am asking if you can suggest a trick or a hint to do that in a dynamic framework which is log-linearised in advance ( I think that this might be a problem as I guess we cannot impose an inequality constraint when we take 1st and 2nd order approximations)

Thank you very much in advance,