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Hi Dynare experts,

I am working on a DSGE model incorporating BGG structure in a small open economy.
More specifically, the original model could work, but when I added an exchange rate policy into it, dynare showed error:

Code: Select all

There are 8 eigenvalue(s) larger than 1 in modulus
for 9 forward-looking variable(s)
The rank condition ISN'T verified!

Error using print_info (line 45)
Blanchard Kahn conditions are not satisfied: indeterminacy



I've searched the forum and many people said that the problem may come from wrong timing. But I only changed a few equations after adding exchange rate change ("g_s") and have checked the timing for a lot of times....

Could anyone help me find the problem? Thank you so much in advance!

This means that you must have made a mistake somewhere along the way. The only advice I can give you is to check everything again, with a particular focus on timing issues. If possible, try to trace your steps and only add one new element at a time to see when the problem appears.