Hi, im new using dynare, but im trying to follow Eric Sims notes, New keynesian model with price stickiness(2017), but trying to implemente the taylor rule with a inflation different to 0 cause the following problem Blanchard & Kahn conditions are not satisfied: indeterminacy.
Error using print_info (line 32)
Blanchard & Kahn conditions are not satisfied: indeterminacy.
Error in stoch_simul (line 120)
print_info(info, options_.noprint, options_);
Error in nk_tr_pitarget_dynare.driver (line 306)
[info, oo_, options_, M_] = stoch_simul(M_, options_, oo_, var_list_);
Error in dynare (line 281)
evalin(‘base’,[fname ‘.driver’]);
nk_tr_pitarget_dynare.mod (2.3 KB)