Issue with the correlation matrix

Hi everyone,

I have a doubt with the correlation matrix when I simulate various versions of the model I am currently working on. The model seems to run (it provides the IRFS returning back to the SS), however the correlation matrix displays only +1 and -1 (i.e. every variable is always prefecly correlated with the others).

Since I am new to this models, I am trying to understand the meaning of this.

Is it correct or do you think there is some mistake I am not considering?

Thank you very much for the help
Have a nice day!

matrix_issue.mod (5.3 KB)

This seems to be caused by your model. If you check the IRFs, they are all exactly proportional to each other. That explains the perfect correlation.

Hi Professor, thank you very much for this answer.

So, if I understand correctly, there is no mistake here but they are just the dynamics implied by my model.
Am I right?

Thank you again,
Have a nice afternoon

Yes, unless there is a mistake in the model.

Dear Prof. jpfeifer, thank you very much for your answers! The model now works correctly