Dear Dynare users, I am trying to replicate the Aoki, Benigno, Kiyotaky (2015) model, which adapts the Gertler and Karadi (2011) financial sector in an open economy context. After having many problems finding the steady-state with dynare, I solve the static model using matlab fsolve, picking out some variables that were making it harder to find a consistent solution and fixing them at their SS value from the paper.

Anyway, after doing that and setting the dynare solver to fsolve (solve_algo = 0) once the default algorithm was not finding the SS, I am still having problems with the eigenvalues and the blanchard-kahn conditions.

Here is my filedigoteste.mod (4.7 KB) , if anyone could take a look and give me any piece of advice I will be extremely grateful.

thank you very much for your answer, Johannes! Unfortunately it didn´t work as well, I still got 9 eigenvalues larger than 1 for 8 forward-looking variables, and could not find any other potential timing inconsistency problem!