Hello,
As I posted days before, I am developing a DSGE model based on Gerali(2010). It has a real sector similar to the one presented by Brzoza-Brzezina and Krzysztof (2011). The model's novelty is that there are households who take debt in foreign currency. I tried to run the model with calibrated parameters but I didn't succeed. Dynare says that there is a rank condition failure. But, nevertheless I use the Model Diagnostic command, Dynare does not tell me what kind of error I have.
Can you please help me or give some advice of how to fix this problem or what could be wrong?
I will appreciate all your comments.
Please find attached the mod.file
Lin.