I am replicating Gali chapter 2 by writing up my own dynare. I know that there might be some code available online. However, I would like to experience hand on. Here is the error message:
" Impossible to find the steady state. Either the model doesn’t have a steady
state, there are an infinity of steady states, or the guess values are too
far from the solution"
How can I overcome such problems? Could you please show me some guidance?
Please see the code in .mod file below.
Classical_mon.mod (1.2 KB)