hello,

I’m trying to run a New Keynesian model which has a banking sector in Dynare.But the result show the error like this:

“Impossible to find the steady state. Either the model doesn’t have a steady state,

there are an infinity of steady states, or the guess values are too far from the

solution”

I have already compute the steady state analytically using pencil and paper.I’m a new user of Dynare,I can not find the problem.Can someone help me and tell me what I’m doing wrong?

I have already uploaded the file,many thanks in advance.

NKmodel.mod (11.7 KB)

Given your supposed steady state values, the residuals of your equations when using resid(1) before steady are

[quote]Residuals of the static equations:

Equation number 1 : 0

Equation number 2 : -0.84443

Equation number 3 : 0

Equation number 4 : -181.969

Equation number 5 : 0

Equation number 6 : -0.65022

Equation number 7 : 0

Equation number 8 : 0

Equation number 9 : -1043.0063

Equation number 10 : 0

Equation number 11 : 0

Equation number 12 : 0

Equation number 13 : 0

Equation number 14 : 0

Equation number 15 : 0

Equation number 16 : 0

Equation number 17 : 0

Equation number 18 : 0

Equation number 19 : 0

Equation number 20 : 3.2062

Equation number 21 : 0

Equation number 22 : 0

Equation number 23 : 0

Equation number 24 : 0

Equation number 25 : 0

Equation number 26 : 0

Equation number 27 : -2.3271

Equation number 28 : 0

Equation number 29 : 0

Equation number 30 : 0

Equation number 31 : 0

Equation number 32 : 0

Equation number 33 : 0

Equation number 34 : 0[/quote]

Hence, either your steady state values are wrong or there is still a mistake in those equations.