Model in open economy with financial frictions

Hi. I’m replying the paper “Financial crises and macro-prudential policies” of Benigno, et al (2012). I want to code the irf. I have this problem:

Error using print_info (line 32)
Blanchard & Kahn conditions are not satisfied: indeterminacy.

Error in stoch_simul (line 103)
print_info(info, options_.noprint, options_);

Error in benigno2.driver (line 341)
[info, oo_, options_, M_] = stoch_simul(M_, options_, oo_, var_list_);

Error in dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;

It’s my code

Thanks for your help

benigno2.mod (3.6 KB)

I guess it should be

predetermined_variables B;