Blanchard Kahn conditions are not satisfied: no stable equilibrium


#1

Hello, I have the problem about the stability conditions of Blanchard and Khan, I can not solve if the problem is by the initial parameters or maybe some error in the temporary variables.

I hope you can help me greetings

AB.mod (10.2 KB)


#2

It seems you have bonds in the model. What assures the solvency of the issuer, i.e. what stabilizes debt?