Blanchard Kahn conditions not satisfied

Dear all,

I am trying to run a DSGE model based on dynare but I am receveing the following error:

[quote]There are 6 eigenvalue(s) larger than 1 in modulus
for 7 forward-looking variable(s)

The rank conditions ISN’T verified!

??? Error using ==> print_info at 43
Blanchard Kahn conditions are not
satisfied: indeterminacy

Error in ==> stoch_simul at 81

Error in ==> MCF at 217
info = stoch_simul(var_list_);

Error in ==> dynare at 120
evalin(‘base’,fname) ;[/quote]

I tried to change my parameters values following the literature, I checked my equation but I still have this error message.

Can someone give me a clue or a way to fix the Blanchard Kahn conditions?

Thanks a lot.
MCF.m (6.47 KB)

You need to post the mod-file, not the m-file

Sorry about that. This is the right file.
MCF.mod (2 KB)

It looks like a timing problem.

Thanks you for responding so quickly.

However, I am not sure to get what you have in mind.
Do you think I made a mistake according the timing convention?

Yes, exactly. Like not correctly identifying that a variable is predetermined.