Blanchard-Khan and model explodes

Hello all!

I have been trying to implement a SAM model in Dynare, I succeeded in getting steady state values. However, the Blanchard-Khan condition is no satisfied even after revisiting my code several times.

Is it because of the indeterminacy that my model explodes even when I try to perform deterministic simulations?

Below are the Matlab and Dynare codes.

Thank you !

newinteraction.mod (4.4 KB)
steady_int.m (4.0 KB)

What do you mean with

I get a perfect foresight solution in Dynare 4.5.7. But the indeterminacy is indeed something to worry about. It is very unusual and indicates an issue with the model.