Dynare forums

Hi,

I am doing optimal policy exercise in a New Keynesian model. I would like to impose zlb on nominal interest rate while optimising the other policy instruments (for example, asset purchases, and the other instruments follow optimal rule). I was wondering if there are procedures that combine ZLB with second order approximation to evaluate welfare. If so is there a matlab or dynare available?

Thank you!

Best wishes,
Xiaoshan

No, there is no generic routine available for this that I would be aware of.