Hello everyone,

Im trying to replicate the gali’s book open economy model and i’m having trouble with simulating it.

the problem must be with the exchange rate equation because when i get it off it works well.

The error that is show is:

??? Error using ==> mrdivide

Matrix dimensions must agree.

Error in ==> lnsrch1 at 64

alamin = tolx/test ;

Error in ==> solve1 at 127

[x,f,fvec,check]=lnsrch1(xold,fold,g,p,stpmax,func,j1,j2,varargin{:});

Error in ==> dynare_solve at 112

[x,info]=solve1(func,x,j1(r(i):r(i+1)-1),j2(r(i):r(i+1)-1),jacobian_flag,

bad_cond_flag, varargin{:});

Error in ==> steady_ at 124

[oo_.steady_state,check] = dynare_solve([M_.fname ‘_static’],…

Error in ==> steady at 52

steady_;

Error in ==> galicap7 at 200

steady;

Error in ==> dynare at 132

evalin(‘base’,fname) ;

can someone give any tips?

the mod file is attached.

Thanks

galicap7.mod (3.95 KB)