I construct a two-country model about the trend inflation, The model is not cpmplex, However, when I run the model, it tells me that the Blanchard Kahn conditions are not satisfied: indeterminacy. I have checked for many times, and don’t know why it happens. The attached is my code,please have a look and help me to solve it
monunion_trend.mod (2.9 KB)
ask for help,thanks
I could not spot anything immediately suspicious. Have you tried whether it’s a matter of parameters. If not, there should be a sign or timing error somewhere.