Two-country DSGE model with an exogenous RW (Help)

Code.mod (18.3 KB)Hello everybody;
Allow me to ask you a help. I work on a two-country DSGE model which potentially want to form an economic and monetary union. The two countries present a very strong dependence (in term of import and liability dollarization) vis-a-vis of the rest of the world which is considered exogenous. However, turning my model I meet a recurrent problem which is:

??? Error using ==> print_info at 74
Impossible to find the steady state. Either the model doesn’t have a steady state, there are an
infinity of steady states, or the guess values are too far from the solution

Error in ==> steady at 92
print_info(info,options_.noprint, options_);

Error in ==> prog at 798

Error in ==> dynare at 180
evalin(‘base’,fname) ; "

I attached the mod file below. Any help will be very much appreciated.

Can you help me please?
Thank you in advance.
Best RegardsCode.mod (18.3 KB)

Given the size of your model, I would suggest to start with a more simple one and then add features. There are a million things that could go wrong.

A more practical issue: initialize all endogenous variable. You forgot s_A and S_B, which should be 1, I guess. Cranking up in steady

yields a steady state, but it seems hardly sensible.

Thank you very much professor.