Hi all,

I have a problem with solving the following equation. I need to log-linearize it around the steady state so I can use it in DSGE model as a linear equation. However, every time I try to solve it, exponentials

Thank you!

* B_0, B_1, xi and phi are parameters

*

I have a problem with solving the following equation. I need to log-linearize it around the steady state so I can use it in DSGE model as a linear equation. However, every time I try to solve it, exponentials

*xi*and*phi*are always there so, in the end, it's not a linear equation at all. Does anybody know how to solve it and what's the final equation?Thank you!

* B_0, B_1, xi and phi are parameters

*

*b*above lambda and every*m*and*u*are not exponents, just labels
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