diff --git a/matlab/dyn_forecast.m b/matlab/dyn_forecast.m
index 9f3f70e81..2d5a21467 100644
--- a/matlab/dyn_forecast.m
+++ b/matlab/dyn_forecast.m
@@ -75,7 +75,7 @@ switch task
     y0 = zeros(M.endo_nbr,maximum_lag);
     for i = 1:M.endo_nbr
         v_name = deblank(M.endo_names(i,:));
-        y0(i,:) = y_smoothed.(v_name)(end-maximum_lag+1:end)+oo.dr.ys(i);
+        y0(i,:) = y_smoothed.(v_name)(end-maximum_lag+1:end)+oo.dr.ys(i);  %does not need to be logged in loglinear case, because simult_ will subtract unlooged steady state
     end
     gend = options.nobs;
     if isfield(oo.Smoother,'TrendCoeffs')
@@ -124,6 +124,10 @@ if ~isscalar(trend)
     yf(i_var_obs,:) = yf(i_var_obs,:) + trend;
 end
 
+if options.loglinear == 1
+    yf=yf-oo.dr.ys(i_var)*ones(1,horizon+1)+log(oo.dr.ys(i_var))*ones(1,horizon+1); %take care of logged steady state in this case; above the unlogged one was added
+end
+
 for i=1:n_var
     vname = deblank(var_list(i,:));
     forecast.Mean.(vname) = yf(i,maximum_lag+(1:horizon))';