I have a problem with simulating model. I got “Blanchard-Kahn conditions are not satisfied”’ error. It is an emergency case and I will be very grateful if someone can help me immediately. This is my code.
This gives the error
Error using print_info (line 32)
Blanchard-Kahn conditions are not satisfied: indeterminacy due to rank failure.
you have unit roots and singularity problems in your model. Try using model_diagnostics; to see what equations are colinear. Since you have a very large open economy model it is very tricky to quickly debug it. One reason for singularity could be that you have included a redundant equation (maybe a budget constraint) and missed out one important one. As it is open economy it could very well be that there is a unit root included, but you should know about that.
Did you build on someone else’s model? If so, try to reduce the size to a working model.