Error : no stable equilibrium


When i run my dynare codes, matlab give me this error message:

??? Error using ==> print_info at 21
Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in ==> stoch_simul at 49

Error in ==> petrole1 at 148

Error in ==> dynare at 26
evalin(‘base’,fname) ;

Could someone please help me understand what does it mean and what i have to do to solve it.


this is just that the model, given the present parameter values is unstable as a dynamic system given the B-K conditions.
one can play around with the values a bit.
or one can strip down the model to the simplest possible version and then add the other equations gradually. then one can see the source of instability gradually.


Thank you so much for your help

Thank you so much for your help