Zero steady state values

Hi All,

I am working on a version of BGG99 model and wrote all the model equations in a linear form. I did not declare initial values, i.e. the model starts from zero initial values. I get all the IRFs but the steady state values for the endogenous variables are all zero. Does this make sense?

Help on this is highly appreciated!

If you linearized your model what you describe is to be expected, because the variables are percentage deviations from steady state, which should be 0 if you are in steady state.