Blanchard & Kahn conditions are not satisfied

Dear Prof. Pfeifer,

I am trying estimate a dataset using Gali_2015_chapter_7 authored by you. I used Taylor Rule option only. I received following error;

error: Blanchard & Kahn conditions are not satisfied: no stable equilibrium.

Model diagnostics says;

MODEL_DIAGNOSTICS: there is 1 colinear relationships between the variables and the equations

I believe this is due to a redundant equation. Could you help me to fix this pls? (mod file and csv attached herewith.)

Test_1.mod (11.0 KB)
test_can.csv (383 Bytes)

The model has a unit root and will therefore require the diffuse_filter-option.