Dear prof jpfeifer,
I’m trying to solve the basic open economy with investment from Carlos veg book. I want to implement a for periods productivity shock in the 2 different case : current account initially worsen and next current account initially improve.
I wrote a code as I understood it but it seems that Dynare have some double finding and computing a steady state because the blanchard-khan conditions are not satisfied. Any idea of the problem?
I also have some trouble in implementing the periods for temporary shock with your working code on USG (2003) dynare don’t find any autocorrelation.
Thanks
exo2.mod (2.7 KB)