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)