Colinear relationships problem

General DSGE Modeling
1

Hi!
I have developed a New Keynesian DSGE model where the Blanchard-Kahn conditions are fullfilled.
However, model_diagnostics reports 6 colinear relationships between the variables and the equations. The model is a two sector model, where the two sectors are perfectly symmetric. Is this a problem? How can the model be corrected to get reasonable results?

With kind regards
P

2

Are the collinear relationships due to unit roots?

3

The unit roots might come from the price level equations such as p=p(-1)+pi;. My real variables such as the consumption demand for domestic goods also depend on price level differences.

4

There will be a unit root in the nominal variables so a collinear relationship is indeed expected.