Hello! I try to implement the Taylor rule in my work, but it does not work. I decided to use the simplest example of NK provided by Eric Sims. And even here it does not work giving such mistake:
Error using print_info (line 32)
Blanchard & Kahn conditions are not satisfied: indeterminacy.
Error in stoch_simul (line 107)
print_info(info, options_.noprint, options_);
Error in s.driver (line 322)
[info, oo_, options_, M_] = stoch_simul(M_, options_, oo_, var_list_);
Error in dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;
Can somebody help me to figure out where my mistake?
s.mod (1.7 KB)