Dynare Rank Condition Problem


I am trying to code in Dynare the model by Eyquem and Kamber (2009).
In appendix, he presents key equations of the log-linearised model.

Within this post, I uploaded the Dynare code and the recap note summarising the how equations are written in the Dynare code.

However, I get the following error message :

There are 3 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)

The rank condition ISN’T verified!

What does this message mean ?

Thank you for your help,
Kind regards
Eyquem_Kamber_Lee.mod (2.51 KB)
Euquem Macroeconomic Volatility and Exchange Rate Pass{through under Internationalized Production.pdf (292 KB)
Eyquem_Kamber_2009_code_recap.pdf (70 KB)

Typically that message means that there is still a timing error or a wrong equation in the model. It is hard to tell where the problem comes from as it can be your implementation or the equations presented in the original paper.