dear all

When I simulate DSGE MODEL of NK model with financial accelerator, I get the following error:

dynare chsimu2

STEADY-STATE RESULTS:

a 3.13326e-025

b -1.29247e-026

c 0

e 0

f 2.06795e-025

h 1.24077e-024

i -2.48154e-024

k -5.37667e-024

lamd 0

m -6.46235e-027

mu 1.03398e-025

n -7.44463e-024

pi 1.03398e-025

q 1.34417e-024

r 1.03398e-025

w 4.1359e-025

x 0

xi -3.0373e-025

y -6.20385e-025

z 4.54949e-024

??? Error using ==> print_info at 24

Blanchard Kahn conditions are not satisfied: indeterminacy

Error in ==> stoch_simul at 50

print_info(info);

Error in ==> chsimu2 at 167

info=stoch_simul(var_list_);

Error in ==> dynare at 36

evalin(‘base’,fname) ;

Does anyone enountered this before. I am using dynare_v3.

Thanks

yushguo

chsimu2.mod (1.5 KB)