Collinearity problems

Dear all,

I open a new topic to see if someone can help me with the collinearity problem I have in my model based on GNSS “Credit and banking in a DSGE model of the Euro Area”. According to model_diagnostics equations 32, 33, 34 and 64 are colinear. Could anyone help me with that please? For the moment I wasn’t able to fix it.

Any idea will be helpful!!

Thanks a lot.
Spain_ext.mod (38.9 KB)

See the forum, Colinearities