Dear Sir,

I have been working with a macro-finance model of banking, and I have initial values to use for .mod file using external m file with fsolve. When I put these values in the mod file, I get an error.

Impossible to find the steady state (the sum of square residuals of the static equations is 0.0000). 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

However, as the error above indicates, residuals of the static equations is 0.0000, and for each of the equation, residuals are also very close to zero.

Equation number 1 : 0 : Lambda

Equation number 2 : 4.6721e-05 : M

Equation number 3 : 0 : p

Equation number 4 : -1.4378e-07 : 4

Equation number 5 : -0.00034204 : 5

Equation number 6 : -0.00035898 : 6

Equation number 7 : 5.6498e-06 : 7

Equation number 8 : 0 : y_r

Equation number 9 : 0 : y_lr

Equation number 10 : 0 : y

Equation number 11 : 0 : z_r

Equation number 12 : 0 : z_lr

Equation number 13 : 5.5746e-06 : pi

Equation number 14 : 0 : d

Equation number 15 : 0 : D

Equation number 16 : -3.5213e-07 : 16

Equation number 17 : 0 : 17

Equation number 18 : 0.00072367 : 18

Equation number 19 : -0.0014539 : 19

Equation number 20 : -0.00072975 : 20

What do you think I should do to successfully run the mod file? Does it suggest that there are still errors in my equations? Can I adjust tolerance level to run through this error?

Thank you!

Jeremy