Hi all,

I’m a beginner in Dynare and I’m trying to estimate a small-open-economy model. But the error that shows up on dynare is as below:

"Error using print_info (line 32)

Impossible to find the steady state (the sum of square residuals of the static

equations is 6409.7154). 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

Error in steady (line 102)

print_info(info,options_.noprint, options_);

Error in T1F1.driver (line 878)

steady;

Error in dynare (line 281)

evalin(‘base’,[fname ‘.driver’]);"

Do I need to make the residuals of all the equation zero?

Is there any way I can do to solve this problem?

Attached is the code. Thank you for your time and assistance.

T1F1.mod (8.2 KB)