Monetary Union - rank problem

Dynare help (legacy posts)
1

Hi, I am working on a simple version of Bergin(2000), but my model doesn’t satisfy the rank condition. I don’t understand why.

"There are 3 eigenvalue(s) larger than 1 in modulus
for 3 forward-looking variable(s)

The rank condition ISN’T verified!"

The mod file is attached.

Could anyone help me?
Bergin_No_MS_simple.mod (1.72 KB)

2

I am not familiar with that model, but are you sure that you have all relevant equations entered correctly? And are you sure that model allows for a unique determinate equilibrium?