Schur (QZ) decomposition error

[Ulugbek]

When we run the attached model file, we get “The generalized Schur (QZ) decomposition failed” message.
How can we fix this problem?

DSGE_MPF.mod (6.0 KB)

[jpfeifer]

See

Dynare mistake: One of the eigenvalues is close to 0/0 (the absolute value of numerator and denominator is smaller than 0.0000! If you believe that the model has a unique solution you can try to reduce the value of qz_zero_threshold

I can only give you the generic advice: try to simplify the model to see where the error comes from. Pay particular attention to timing errors.