Blanchard Kahn Conditions

Dynare help (legacy posts)
1

I am using the check command and when I run the model I get the following message:
"There are 45 eigenvalue(s) larger than 1 in modulus
for 45 forward-looking variable(s)

The rank condition is verified.

info =

 3

??? Error using ==> print_info
Blanchard Kahn conditions are not satisfied: no stable equilibrium"

I was looking through the message board and saw that on Tue Mar 07, 2006 another user had the smae problem, but I cannot see how the problem was resolved. Does anyone have any idea why Dynare would report that the number of unstable eigenvalues is equal to the number of forward looking variables, yet the Blanchard Kahn conditions are not met?
Any insight would be greatly appreciated.
Thanks.

2

If you are running a current version of Dynare, please post your *.mod file. Otherwise, update your version of Dynare.

Thanks

Michel

3

I have loaded the latest version of Dynare and I have tried running the model again, but I still get the same message. There are 45 forward looking variables, 45 eigenvalues greater than one in modulus, but the Blanchard-Kahn conditions are not met. I am attaching the mod file.
Thank you very much for your help with this problem.
GI727.mod (34.8 KB)