I am running into the following error while trying to get IRF from semi-structural new-Keynesian model. Everything seems fine into the equations, it says that
There are 5 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s),
The rank condition ISN’T verified!
and the error:
Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure
I am attaching the model code to this post. Can someone tell me what may be the problem,
Gap_model.mod (2.3 KB)