diff --git a/matlab/dyn_forecast.m b/matlab/dyn_forecast.m
index 58c33c96d..135e0eb9b 100644
--- a/matlab/dyn_forecast.m
+++ b/matlab/dyn_forecast.m
@@ -88,7 +88,7 @@ switch task
         if isfield(oo.Smoother,'Constant') && isfield(oo.Smoother.Constant,v_name)
             y0(i,:)=y0(i,:)-oo.Smoother.Constant.(v_name)(end-maximum_lag+1:end); %subtract mean or steady state
             if options.loglinear
-                y0(i,:)=y0(i,:)+log(oo.dr.ys(strmatch(v_name,deblank(M.endo_names),'exact')));
+                y0(i,:)=y0(i,:)+log_variable(i,oo.dr.ys,M);
             else
                 y0(i,:)=y0(i,:)+oo.dr.ys(strmatch(v_name,deblank(M.endo_names),'exact'));
             end
diff --git a/matlab/resol.m b/matlab/resol.m
index 52618e6e8..d9e1f6b20 100644
--- a/matlab/resol.m
+++ b/matlab/resol.m
@@ -108,8 +108,9 @@ if info(1)
 end
 
 if options.loglinear
-    % Find variables with non positive steady state.
-    idx = find(dr.ys<1e-9);
+    % Find variables with non positive steady state. Skip auxiliary
+    % variables for lagges/leaded exogenous variables
+    idx = find(dr.ys(get_all_variables_but_lagged_leaded_exogenous(M)) < 1e-9);
     if length(idx)
         if options.debug
             variables_with_non_positive_steady_state = M.endo_names(idx,:);
diff --git a/matlab/stoch_simul.m b/matlab/stoch_simul.m
index 0de085f49..adafa7a34 100644
--- a/matlab/stoch_simul.m
+++ b/matlab/stoch_simul.m
@@ -84,8 +84,8 @@ else
 end
 
 if options_.loglinear && isfield(oo_.dr,'ys') && options_.logged_steady_state==0 %log steady state for correct display of decision rule    
-    oo_.dr.ys=log(oo_.dr.ys);
-    oo_.steady_state=log(oo_.steady_state);
+    oo_.dr.ys=log_variable(1:M_.endo_nbr,oo_.dr.ys,M_);
+    oo_.steady_state=log_variable(1:M_.endo_nbr,oo_.steady_state,M_);
     options_old.logged_steady_state = 1; %make sure option is preserved outside of stoch_simul
     options_.logged_steady_state=1; %set option for use in stoch_simul
 end
diff --git a/matlab/stochastic_solvers.m b/matlab/stochastic_solvers.m
index adf0506b8..d387a78a5 100644
--- a/matlab/stochastic_solvers.m
+++ b/matlab/stochastic_solvers.m
@@ -334,12 +334,16 @@ end
 
 if options_.loglinear
     % this needs to be extended for order=2,3
-    k = find(dr.kstate(:,2) <= M_.maximum_endo_lag+1);
-    klag = dr.kstate(k,[1 2]);
-    k1 = dr.order_var;
-    dr.ghx = repmat(1./dr.ys(k1),1,size(dr.ghx,2)).*dr.ghx.* ...
-             repmat(dr.ys(k1(klag(:,1)))',size(dr.ghx,1),1);
-    dr.ghu = repmat(1./dr.ys(k1),1,size(dr.ghu,2)).*dr.ghu;
+    k = get_all_variables_but_lagged_leaded_exogenous(M_);
+    [ik,k1] = rm_lagged_leaded_exogenous_variables(dr.order_var,M_);
+    [iklag,klag1] = rm_lagged_leaded_exogenous_variables(dr.order_var(M_.nstatic+(1:M_.nspred)),M_);
+    if ~isempty(ik)
+        if M_.maximum_endo_lag > 0
+            dr.ghx(ik,iklag) = repmat(1./dr.ys(k1),1,length(klag1)).*dr.ghx(ik,iklag).* ...
+                repmat(dr.ys(klag1)',length(ik),1);
+        end
+        dr.ghu(ik,:) = repmat(1./dr.ys(k1),1,M_.exo_nbr).*dr.ghu(ik,:);
+    end
     if options_.order>1
        error('Loglinear options currently only works at order 1')
     end