Simple model - indeterminacy


I have a very simple Ireland (2004) model. But I am getting indeterminacy. Can anyone please suggest? Attached is the mod file.mpr_mon.mod (1.5 KB)

With phipie=0.25; your model does not satisfy the Taylor principle

I changed phipie to 2, the error now is

The Jacobian matrix evaluated at the steady state contains elements that are not real or are infinite

Now you need to figure out why the steady state cannot be computed.

I want to give a negative shock to monetary policy and I did that by putting a negative sign before the shock in the taylor rule equation. But it is producing the results for contractionary monetary policy

logĀ® = phix* log(r(-1)) + phipie*log(pi/piss) - epsmmpr_mon.mod (1.8 KB)

Where am I going wrong?