Hi,
If I set a near unity .995 subjective discount factor beta for my preference, it says blanchard kahn condition violated.
But it works with a lower beta.
How can this be? What might be a solution if I need high beta like 0.995
Hi,
If I set a near unity .995 subjective discount factor beta for my preference, it says blanchard kahn condition violated.
But it works with a lower beta.
How can this be? What might be a solution if I need high beta like 0.995