I’m doing a ramsey (commitment) policy for simple small open economy model by Galli and Monacelli (2005). I added some other shocks besides productivity and world output shocks (which are in the paper). But as I implement this policy, I only let the productivity shock to happen.
I get errors as NaN in the steady state. Why do I get that and what can I do to erase those errors?
Here I also send mod file of ramsey policy.
Thank you so much.
ramsey.mod (3.4 KB)