Hi,
I've been adapting Gertler&Karadi 2013 (QE 1 vs 2 vs 3), but discovered that the steady state values of the model I got from the macro modelbase are negative, i.e. Yss, Lss, Kss, Css etc are all negative.
The model runs, and my adaptions also generate the expected results.
Still, to calibrate a new parameter, I wanted to look at the impact on steady state net worth over GDP (so Yss). This yields strange results of course, as Yss is negative.
Does anyone have a clue?
Thanks!