diff --git a/doc/dynare.texi b/doc/dynare.texi
index a5715a8d3..9a735a680 100644
--- a/doc/dynare.texi
+++ b/doc/dynare.texi
@@ -2837,22 +2837,25 @@ steady(homotopy_mode = 1, homotopy_steps = 50);
 
 If you know how to compute the steady state for your model, you can
 provide a MATLAB/Octave function doing the computation instead of
-using @code{steady}. If your MOD-file is called
-@file{@var{FILENAME}.mod}, the steady state file should be called
-@file{@var{FILENAME}_steadystate.m}.
-
-Again, there are two options for creating this file:
+using @code{steady}. Again, there are two options for doing that:
 
 @itemize
 
 @item
-The easiest way is to write a @code{steady_state_model} block.
+The easiest way is to write a @code{steady_state_model} block, which
+is described below in more details. See also @file{fs2000.mod} in the
+@file{examples} directory for an example.
+
+The steady state file generated by Dynare will be called
+@file{@var{FILENAME}_steadystate2.m}.
 
 @item
-You can write the corresponding Matlab function by hand. See @file{fs2000_steadystate.m}
-in the @file{examples} directory for an example. This option
-gives a bit more flexibility, at the expense of a heavier
-programming burden and a lesser efficiency.
+You can write the corresponding MATLAB function by hand. If your
+MOD-file is called @file{@var{FILENAME}.mod}, the steady state file
+must be called @file{@var{FILENAME}_steadystate.m}. See
+@file{NK_baseline_steadystate.m} in the @file{examples} directory for
+an example. This option gives a bit more flexibility, at the expense
+of a heavier programming burden and a lesser efficiency.
 
 @end itemize
 
diff --git a/examples/fs2000.mod b/examples/fs2000.mod
index 14e78d910..36aace113 100644
--- a/examples/fs2000.mod
+++ b/examples/fs2000.mod
@@ -87,6 +87,32 @@ var e_a; stderr 0.014;
 var e_m; stderr 0.005;
 end;
 
+steady_state_model;
+  dA = exp(gam);
+  gst = 1/dA;
+  m = mst;
+  khst = ( (1-gst*bet*(1-del)) / (alp*gst^alp*bet) )^(1/(alp-1));
+  xist = ( ((khst*gst)^alp - (1-gst*(1-del))*khst)/mst )^(-1);
+  nust = psi*mst^2/( (1-alp)*(1-psi)*bet*gst^alp*khst^alp );
+  n  = xist/(nust+xist);
+  P  = xist + nust;
+  k  = khst*n;
+
+  l  = psi*mst*n/( (1-psi)*(1-n) );
+  c  = mst/P;
+  d  = l - mst + 1;
+  y  = k^alp*n^(1-alp)*gst^alp;
+  R  = mst/bet;
+  W  = l/n;
+  ist  = y-c;
+  q  = 1 - d;
+
+  e = 1;
+  
+  gp_obs = m/dA;
+  gy_obs = dA;
+end;
+
 steady;
 
 check;
diff --git a/examples/fs2000_steadystate.m b/examples/fs2000_steadystate.m
deleted file mode 100644
index 2ac140da5..000000000
--- a/examples/fs2000_steadystate.m
+++ /dev/null
@@ -1,73 +0,0 @@
-% computes the steady state of fs2000 analyticaly
-% largely inspired by the program of F. Schorfheide
-
-% Copyright (C) 2004-2010 Dynare Team
-%
-% This file is part of Dynare.
-%
-% Dynare is free software: you can redistribute it and/or modify
-% it under the terms of the GNU General Public License as published by
-% the Free Software Foundation, either version 3 of the License, or
-% (at your option) any later version.
-%
-% Dynare is distributed in the hope that it will be useful,
-% but WITHOUT ANY WARRANTY; without even the implied warranty of
-% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
-% GNU General Public License for more details.
-%
-% You should have received a copy of the GNU General Public License
-% along with Dynare.  If not, see <http://www.gnu.org/licenses/>.
-
-function [ys,check] = fs2000_steadystate(ys,exe)
-  global M_
-  
-  alp = M_.params(1); 
-  bet = M_.params(2); 
-  gam = M_.params(3); 
-  mst = M_.params(4); 
-  rho = M_.params(5); 
-  psi = M_.params(6); 
-  del = M_.params(7); 
-
-  check = 0;
-  
-  dA = exp(gam);
-  gst = 1/dA;
-  m = mst;
-  
-  khst = ( (1-gst*bet*(1-del)) / (alp*gst^alp*bet) )^(1/(alp-1));
-  xist = ( ((khst*gst)^alp - (1-gst*(1-del))*khst)/mst )^(-1);
-  nust = psi*mst^2/( (1-alp)*(1-psi)*bet*gst^alp*khst^alp );
-  n  = xist/(nust+xist);
-  P  = xist + nust;
-  k  = khst*n;
-
-  l  = psi*mst*n/( (1-psi)*(1-n) );
-  c  = mst/P;
-  d  = l - mst + 1;
-  y  = k^alp*n^(1-alp)*gst^alp;
-  R  = mst/bet;
-  W  = l/n;
-  ist  = y-c;
-  q  = 1 - d;
-
-  e = 1;
-  
-  gp_obs = m/dA;
-  gy_obs = dA;
-  
-  ys =[
-m     
-P     
-c     
-e     
-W     
-R     
-k     
-d     
-n     
-l     
-gy_obs
-gp_obs
-y     
-dA          ];