Dear professor：
when I run my dynare code,some weird results comes out :
There are 8 eigenvalue(s) larger than 1 in modulus
for 7 forward-looking variable(s)
The rank condition ISN’T verified!
MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.
misuse print_info (line 32)
Blanchard & Kahn conditions are not satisfied: no stable equilibrium.
error stoch_simul (line 103)
print_info(info, options_.noprint, options_);
error file2.driver (line 683)
[info, oo_, options_, M_] = stoch_simul(M_, options_, oo_, var_list_);
error dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;
if I change rho_m to 0, it can run.
Thank you for your kindheart.
Best wishes
file2.mod (3.9 KB)