Info = 3?

hi, why do I get this error if I have the same number unstable eigenvalues than forward looking variables? what does info=3 mean?

There are 14 eigenvalue(s) larger than 1 in modulus
for 14 forward-looking variable(s)

The rank conditions ISN’T verified!

info =


I’ve found this in the code:

% function print_info(info)
% Prints error messages
% info=1: the model doesn’t determine the current variables ‘…’ uniquely
% info=2: MJDGGES returns the following error code’
% info=3: Blanchard Kahn conditions are not satisfied: no stable ‘…’ equilibrium
% info=4: Blanchard Kahn conditions are not satisfied:’…’ indeterminacy
% info=5: Blanchard Kahn conditions are not satisfied:’…’ indeterminacy due to rank failure
% info=20: Impossible to find the steady state. Either the model’ …’ doesn’t have
% a unique steady state of the guess values’ …’ are too far from the solution
% info=30: Variance can’t be computed


unstable eigenvalues == # forward looking variables

is not a necessary and sufficient condition for a unique stable solution. You also need to satisfy a rank condition. Look at slides page 13.

Blanchard & Kahn assume that the rank condition is satisfied (just before proposition 1 page 1308)