Hi everyone,
I’m working on a small open DSGE model and I’m a little confused about how to find the cause of an oscillatory behavior of foreign economy shocks IRFs. As you can see by running my code there isn’t any complex eigenvalue and model_diagnostics does not return any error message.
I’ve already checked all equations and didn’t identified timing issues. Also, when I use the linear model everything goes well. Although, I need to work with a non-linear one since I will expand the model to allow for domestic debt accumulation.
Thanks in advance,
Marina
ModelOpen.mod (18.5 KB)