Eigenvalues and modulus

Dynare help (legacy posts)
1

Hi! I have a dynare code which I have already fix many problems but my last is something related with the persistence of two series which are Exchange rate and inflation: “e” and “p” respectively. I don’t know why I get explosive results with respect to money growth shock “g”.

Please if you could help me, I would really appreciate

thanks!
openterminado.mod (7.24 KB)

2

I get this problem:

model_diagnostics(M_,options_,oo_)
model_diagnostic: the Jacobian of the static model is singular
there is 1 colinear relationships between the variables and the equations
Colinear variables:
m
p
e
Colinear equations
11 14

I don’t really know how to solve it! please help!

3

Have you found your answer?
you have a unit root in your system.