I hope somebody can help me with this problem, please.
When I run the file (attached), appears the next error:
"*There are 8 eigenvalue(s) larger than 1 in modulus
for 7 forward-looking variable(s)
The rank condition ISN’T verified!
Error using print_info (line 42)
Blanchard Kahn conditions are not satisfied: no stable equilibrium*"
But, when I fix the line 26 with “q2(-1) = beta*(C(-1)/C)*(R2+(1-delta)*q2);”, the file runs normally.
Somebody know if that change is right?
Thank u so much;
CT_v1.mod (1.99 KB)