onk_sticky_wages_Pfeifer.mod (8.7 KB) Hi. I’m trying to do a code for open new keynesian model with sticky wages. I’m using the codes of Johannes Pfeifer. However I have a problem: “Blanchard & Kahn conditions are not satisfied:
indeterminacy”. This is the code. Thanks for the help.
For some reason, your model only satisfies the Taylor principle for e.g. phi_pi = 0.5; You need to find out why.