# Error using print_info (line 45) Blanchard Kahn conditions are not satisfied: indeterminacy

Hi there,

I’m new to dynare and am having trouble with coding a basic NK model from Gali. I’m getting a Blachard Kahn condition violation, which I understand tends to mean there’s a timing error in my model. However, I cannot seem to locate it and hope someone could help me identify the problem. Code is below:

%nkgali.mod

var ppi x ii y yn r rn a v z;

varexo eps_a eps_z eps_v;

parameters beta, rho_a, rho_v, rho_z, sigma, phi, alpha, epsilon, theta, mu, bigPhi, lambda, kappa, rho, psi_ya, psi_y, rho_i, phi_pi, phi_x, sig_a, sig_z, sig_v;

beta = 0.99;

sigma = 1;

phi = 5;

alpha = 0.25;

epsilon = 9;

theta = 0.75;

mu = log(epsilon/(epsilon - 1));

bigPhi = (1-alpha)/(1-alpha + alpha*epsilon);

lambda = (1-theta)(1-thetabeta)*bigPhi/theta;

kappa = lambda*(sigma+(phi+alpha)/(1-alpha));

rho = -log(beta);

psi_ya = (1+phi)/(sigma*(1-alpha)+phi+alpha);

psi_y = -(1-alpha)(mu-log(1-alpha))/(sigma(1-alpha)+phi+alpha);

rho_a = 0.9;

rho_v = 0.5;

rho_z = 0.5;

rho_i = 0.0;

phi_pi = 1.5;

phi_x = 0.5/4;

sig_a = 0.007;

sig_z = 0.03;

sig_v = 0.0031;

model;

ppi = beta * ppi(+1) + kappa * x ;

x = -sigma^(-1)*(ii - ppi(+1) - rn) + x(+1) ;

ii = (1-rho_i)rho + rho_iii(-1) + (1-rho_i)*(phi_pi * ppi * phi_x * x) + v ;

x = y - yn ;

yn = psi_ya * a + psi_y ;

rn = rho - sigma*(1-rho_a)psi_yaa + (1-rho_z)*z ;

r = ii - ppi(+1) ;

a = rho_a*a(-1) + eps_a ;

v = rho_v*v(-1) + eps_v ;

z = rho_z*z(-1) + eps_z ;

end;

initval;

ppi = 0;

x = 0;

ii = rho;

y = psi_y;

yn = psi_y;

r = rho;

rn = rho;

a = 0;

v = 0;

z = 0;

end;

shocks;

var eps_a = sig_a^2;

var eps_v = sig_v^2;

var eps_z = sig_z^2;

end;

stoch_simul(periods=0,irf=16,graph_format=pdf);