Warning: the matrix is close to singular value, or scaling error. The results may not be accurate. RCOND = 3.054158e-19。

Steady state
1

Dear professor：

I am a new user of Dynare and trying to set up a quantity monetary police, but getting the warning message Warning:

Matrix is close to singular or badly scaled. Results may be inaccurate. RCOND =  3.054158e-19 . 
In trust_region>dogleg (line 198)
In trust_region (line 115)
In dynare_solve (line 255)
In evaluate_steady_state (line 221)
In steady_ (line 55)
In steady (line 80)
In file2.driver (line 669)
In dynare (line 293)

Can you please explain what this means and what I can do about it? Thank you so much!

file2.mod (3.8 KB)

2

Dynare shows two equations with huge residuals (9 and 10):

Equation number 9 : 242781491.4479 : 9
Equation number 10 : 242781496.5295 : 10

You should focus on those. Often there are still mistakes in the model.

3

Thank you for your reply patiently, I try to fix it.