Singularity problem and Colinear equations

[jpfeifer]

Walras law in dsge model

That is hard to debug. I can only recommend starting with a smaller model to see where the problem is.

1. As the check-command shows, there is no unit root.
2. The problem may be your use of the steady_state-operator. Please have a look at

Open Economy

Ok, it seems you are trying to determine variables in steady state that cannot be endogeneously. Take inflation: every percentage point higher steady state inflation will increase the steady state nominal interest accordingly. But any consistent combination of both (via the link the Fisher equation provides) is feasible. You need to pin down one of them by setting the value. The model cannot do this for you. Take bonds. When Ricardian equivalence holds, bonds and lump sum taxes are perfect sub…