# OSR: indeterminacy

**URL:** https://forum.dynare.org/t/osr-indeterminacy/4592
**Category:** Dynare contributions and examples
**Created:** [31 March 2015 00:05 UTC](https://forum.dynare.org/t/osr-indeterminacy/4592 "2015-03-31T00:05:01Z")
**Posts on this page:** 4
**Page:** 1

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### Author: ![reubenpjacob](https://forum.dynare.org/letter_avatar_proxy/v4/letter/r/e5b9ba/32.png) [@reubenpjacob](https://forum.dynare.org/u/reubenpjacob)
#### Post date: [31 March 2015 00:05 UTC](https://forum.dynare.org/t/osr-indeterminacy/4592/1 "2015-03-31T00:05:01Z")

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Hi All  
Is it possible that the optimal simple rules computed by dynare violate the Blanchard-Kahn determinacy conditions?  
Thanks  
Reuben

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### Author: ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [31 March 2015 07:18 UTC](https://forum.dynare.org/t/osr-indeterminacy/4592/2 "2015-03-31T07:18:53Z")

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No, that should never happen. If you encounter this in the most recent Dynare version, please send me the files to check for the presence of a bug.

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### Author: ![reubenpjacob](https://forum.dynare.org/letter_avatar_proxy/v4/letter/r/e5b9ba/32.png) [@reubenpjacob](https://forum.dynare.org/u/reubenpjacob)
#### Post date: [14 April 2015 02:47 UTC](https://forum.dynare.org/t/osr-indeterminacy/4592/3 "2015-04-14T02:47:48Z")

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Thanks Johannes. It is my colleague who is facing the problem using dynare 4.3.0. The problem occurs when when the osr command is used within a loop over lambda\_y and lambda\_r, the weights in the loss function over the variance of output and interest rate, in the monetary authority’s loss function. For each value of lambda\_y lambda\_r], the osr is initiated with the parameters set at the same standard values. At some point in the grid, once the optimal rule is found, dynare reports Blanchard-Kahn indeterminacy and the loop does not progress. Let me see if I can get the code.  
Reuben

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### Author: ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [14 April 2015 08:18 UTC](https://forum.dynare.org/t/osr-indeterminacy/4592/4 "2015-04-14T08:18:43Z")

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Before doing so, please tell him to use the most recent unstable version. There were quite a few bugs affecting osr that have been fixed.
