function [ys,check] = NK_baseline_steadystate(ys,exe)
global M_ lgy_

if isfield(M_,'param_nbr') == 1
NumberOfParameters = M_.param_nbr;
for i = 1:NumberOfParameters
  paramname = deblank(M_.param_names(i,:));
  eval([ paramname ' = M_.params(' int2str(i) ');']);
end
check = 0;
end


%% Enter model equations here

options=optimset(); % set options for numerical solver

% the steady state computation follows FV (2006), section 4.1
PI=PIbar;
u=1;
q=1;
d=1;
phi=1;
m=0;
zeta=1;
mu_z=exp(LambdaYd);
mu_I=exp(Lambdamu);
mu_A=exp(LambdaA);

%set the parameter Lambdax
Lambdax=mu_z;

%set the parameter gammma1
gammma1=mu_z*mu_I/betta-(1-delta);

r=1*gammma1;
R=1+(PI*mu_z/betta-1);

%set Rbar
Rbar=R;

PIstar=((1-thetap*PI^(-(1-epsilon)*(1-chi)))/(1-thetap))^(1/(1-epsilon));
PIstarw=((1-thetaw*PI^(-(1-chiw)*(1-eta))*mu_z^(-(1-eta)))/(1-thetaw))^(1/(1-eta));

mc=(epsilon-1)/epsilon*(1-betta*thetap*PI^((1-chi)*epsilon))/(1-betta*thetap*PI^(-(1-epsilon)*(1-chi)))*PIstar;
w=(1-alppha)*(mc*(alppha/r)^alppha)^(1/(1-alppha));
wstar=w*PIstarw;
vp=(1-thetap)/(1-thetap*PI^((1-chi)*epsilon))*PIstar^(-epsilon);
vw=(1-thetaw)/(1-thetaw*PI^((1-chiw)*eta)*mu_z^eta)*PIstarw^(-eta);
tempvaromega=alppha/(1-alppha)*w/r*mu_z*mu_I;

ld=fsolve(@(ld)(1-betta*thetaw*mu_z^(eta-1)*PI^(-(1-chiw)*(1-eta)))/(1-betta*thetaw*mu_z^(eta*(1+gammma))*PI^(eta*(1-chiw)*(1+gammma)))...
-(eta-1)/eta*wstar/(varpsi*PIstarw^(-eta*gammma)*ld^gammma)*((1-h*mu_z^(-1))^(-1)-betta*h*(mu_z-h)^(-1))*...
((mu_A*mu_z^(-1)*vp^(-1)*tempvaromega^alppha-tempvaromega*(1-(1-delta)*(mu_z*mu_I)^(-1)))*ld-vp^(-1)*Phi)^(-1),0.25,options);

l=vw*ld;
k=tempvaromega*ld;
x=(1-(1-delta)*(mu_z*mu_I)^(-1))*k;
yd=(mu_A/mu_z*k^alppha*ld^(1-alppha)-Phi)/vp;
c=(mu_A*mu_z^(-1)*vp^(-1)*tempvaromega^alppha-tempvaromega*(1-(1-delta)*(mu_z*mu_I)^(-1)))*ld-vp^(-1)*Phi;
lambda=(1-h*betta*mu_z^(-1))*(1-h/mu_z)^(-1)/c;
F=yd-1/(1-alppha)*w*ld;
f=(eta-1)/eta*wstar*PIstarw^(-eta)*lambda*ld/(1-betta*thetaw*mu_z^(eta-1)*PI^(-(1-chiw)*(1-eta)));
f2=varpsi*d*phi*PIstarw^(-eta*(1+gammma))*ld^(1+gammma)/(1-betta*thetaw*(PI^chiw/PI)^(-eta*(1+gammma))*(wstar/wstar*mu_z)^(eta*(1+gammma)));

g1=lambda*mc*yd/(1-betta*thetap*PI^((1-chi)*epsilon));
g2=epsilon/(epsilon-1)*g1;

%% end own model equations


for iter = 1:length(M_.params)
  eval([ 'M_.params(' num2str(iter) ') = ' M_.param_names(iter,:) ';' ])
end

if isfield(M_,'param_nbr') == 1

if isfield(M_,'orig_endo_nbr') == 1
NumberOfEndogenousVariables = M_.orig_endo_nbr;
else
NumberOfEndogenousVariables = M_.endo_nbr;
end
ys = zeros(NumberOfEndogenousVariables,1);
for i = 1:NumberOfEndogenousVariables
  varname = deblank(M_.endo_names(i,:));
  eval(['ys(' int2str(i) ') = ' varname ';']);
end
else
ys=zeros(length(lgy_),1);
for i = 1:length(lgy_)
    ys(i) = eval(lgy_(i,:));
end
check = 0;
end