Hello dear team,
could you please help me to solve to solve the problem in my code?
There are 5 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)
The rank condition ISN’T verified!
thanks.
ch2.mod (3.5 KB)
Hello dear team,
could you please help me to solve to solve the problem in my code?
There are 5 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)
The rank condition ISN’T verified!
thanks.
ch2.mod (3.5 KB)
Are you sure it’s R(+1)
in the Euler equation? Usually, the nominal interest rate is known in advance.