Hello everyone, I am currently trying to run a Ramsey optimal problem model where the planner controls one instrument. However, I get the following error message:

Blanchard & Kahn conditions are not satisfied: no stable equilibrium.

I am aware that, usually, Blanchard-Khan problems are related to a timing issue, but I face some difficulties in finding the problems with mine. When running the model diagnostic, this is what I get:

MODEL_DIAGNOSTICS: The following endogenous variables aren’t present at the current period in the model: MULT_26 MULT_28 evaluate_steady_state: The initial values for the steady state of the following variables are NaN: AUX_EXO_LEAD_954

Do you have any suggestion on how to tackle this problem?

Thank you very much for your help,
Have a nice day!

Dear Professor, thank you for the answer.
I am not sure I understand your second point, could you please be more precise?
However, in addition, I’ve found a combination of parameters that seems to work.

@kofiemma Do you mean the value of v at steady state? v is an help for firms and it is set to zero at steady state.