Hello,

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),

but

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,

Thanks.

Gap_model.mod (2.3 KB)