Hi, I have a model in dynare that has rank condition problem.
I study many topics in this forum and they say that it is timing problem.
but I check my model several times and I not found any timing problem.
I attach my dynare code.
please help me.
mohammad.mod (9.9 KB)
And i have another question: I have price rigidity(calvo) in my model,but inflation after a energy price shock ,behave very sharply and does not have any curvature.wgat is problem in this context?
Your model is unstable, i.e. explosive. That may be due to a problematic fiscal rule not stabilizing debt.