Unable to calculate steady state

[Scarlett]

Hello, I am new to Dynare and I encountered the following problem while learning to use Dynare:

thesis2.mod (2.7 KB)
I hope you can help me solve the problem.Thank you!

[jpfeifer]

See

Dynare help :steady state has NaNs or Inf

Only do exp()-substitutions once the model runs. Even better, use auxiliary variables. See Question about understanding irfs in dynare - #4 by jpfeifer It should be lamda=log(lamdass);

Also,

gm = m - m(-1);

suggests your model has a unit root. See

Can Dynare estimate this SSM model?

It seems your model has one or more unit roots. In that case, there are infinitely many steady states and they cannot be endogenously computed. Please provide an analytical steady state.

[Scarlett]

Thank you very much for your response. May I ask how to eliminate unit roots in the model?

[jpfeifer]

There is no general answer to this. But it seems you are specifying the central bank as exogenously changing the growth rate of money. That causes the unit root as there is no tendency for the level of the money supply to go back to steady state.