Rank isn't verified

Stochastic simulations
1

Dear all
I try to combine an Open Economy New Keynesian Model( Gali and Monacelli 2005) and Banks and QE in the New Keynesian Model(Gertler and Karadi (2011)).

Then I am stuck with the this error:
There are 8 eigenvalue(s) larger than 1 in modulus
for 11 forward-looking variable(s)
The rank condition ISN’T verified!

Not sure what the error means. I know it has sth to do with the setting of model, but I am not sure how to fix it in the right way.
Thanks.
JackModel3.mod (3.7 KB)
consolejm3.m (3.6 KB)

2

Most often, the problem is a timing error.

1 Like
3

Thanks professor, I am checking my code in this direction