Dear Dynare team,
I have this problem when running my file:
There are 3 eigenvalue(s) larger than 1 in modulus
for 2 forward-looking variable(s)
The rank condition ISN’T verified!
I appreciate your help.
ch1sec1.mod (1.6 KB)
Check your equations. For example, are you sure you are correctly distinguishing real and nominal wages?
I can force the model to run when I use
//3- Money demand
m -sigma*C = int/(1+intss);
that is delete the minus on the right. Without knowing the model, it is impossible to tell, but there must be a mistake somewhere.
Well, i’m sure about the interest rate rule and I log linearized the equations with Uhlig method.
I didn’t know how to log linearize this equation of Money growth with Uhlig:
That equation is already linear for practical purposes.
I took the money demand function and money growth equation from this article and log linearized them.
sims 2017.pdf (2.7 MB)
the model without them runs but with them, it doesn’t. And I’m sure of calculations!!!
Then why do the conditions differ from the ones in the PDF?
I took only those two equations. I can’t see the problems.
How do you suggest correcting if there are any faults Sir!