I tried to replicate Thomas Carlos’s paper as a first exercice with linear model (search frictions, real rigidities and Inflation Dynamics JMCB2011 ) . when i run my codes dynare posts the following message error. Can someone please tell me what i should do in this case?
equation are already log-linearised in the paper. I Attached the file. Thanks a lot!
There are 4 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)
The rank condition ISN’T verified!
??? Error using ==> print_info at 45
Blanchard Kahn conditions are not satisfied: indeterminacy
Error in ==> stoch_simul at 98
print_info(info, options_.noprint, options_);
Error in ==> testcarlos at 198
info = stoch_simul(var_list_);
Error in ==> dynare at 180
testcarlos.mod (1.64 KB)