Small Open Economy -- Complete Markets --BK problem

[Philipp]

Dear Dynare users,
I'm stuck with an indeterminacy problem for a small open economy model.
As a matter of fact, I am not quite sure where the problem lies and would appreciate your help here.
The model features complete asset markets, Rotemberg price adjustment costs and a fiscal policy shock.
Best,
Philipp

[jpfeifer]

Check the timing in every equation, in particular the forward-looking ones.

If that does not work, strip down the model to an easier working version. For example, use flexible prices to see if the problem comes from price setting.

[Philipp]

Dear Johannes,
thanks alot for your prompt answer, as always very helpful.
I have set the foreign economy as exogenous and obtained a working model. Another way to fix the problem was to specify foreign inflation as exogenous rather than foreign output.
Best,
Philipp