Re: The Zero Lower Bound Constraint on Nominal Int. Rate
Posted: Wed May 14, 2014 12:25 pm
jpfeifer wrote:(d_ss, e_ss, l_ss) are not set.
Thank you for your advice. After setting these stuff, the model stil fails.
Have you ever read Michael Funke and Michael Paetz`s paper, "Financial system reforms and China’s monetary policy framework: A DSGE-based assessment of initiatives and proposals". In model with zero lower bound, how could they introduce the market rate while there exist another rate call regulated rate at the same time. I do not how this could be possible in the dynare program.