Cannot find Steady State. Monetary Rigid Price Model

Dynare contributions and examples
1

Hello,
I am trying to run a monetary - sticky price - modell, but Dynare simply cannot find the steady state. Maybe there is none, and maybe I am just too far from it. Code attached. Any help greatly appreciated.

This is what the Matlab output says:

[quote] Residuals of the static equations:

Equation number 1 : -0.0070921
Equation number 2 : -0.00098369
Equation number 3 : -0.023564
Equation number 4 : -0.0044728
Equation number 5 : 0.00012769
Equation number 6 : -0.011285
Equation number 7 : 0.012681
Equation number 8 : -0.018034
Equation number 9 : 3.6601e-05
Equation number 10 : 0.060529
Equation number 11 : 0.031966
Equation number 12 : 0.0033404

Error using print_info (line 74)
Impossible to find the steady state. Either the model doesn’t have a
steady state, there are an infinity of steady states, or the guess values
are too far from the solution
[/quote]

rigMon.mod (2.15 KB)

2

Your model has two unit roots. check whether they are desired. Also, given the small size of your model, try providing an analytical steady state.