Collinearity problem

Dynare help (legacy posts)
1

Hi all,

I´m trying to run a simple NK model with government spending shocks, but I´m having collinearity problems. If someone could take a look at the code. Thanks in advance.
nk.mod (995 Bytes)

2

Is mcr really just -mu? And why is

y = y + ybar;
ybar need to be 0 for this to hold.