What you will learn
In these tutorials and videos I will present the perfect foresight approach to simulate DSGE models deterministically. We will cover both the theory and best practices as well as implementation details in Dynare.
We cover deterministic simulations in DSGE models also known as perfect foresight simulations and how one can do this in Dynare. Several scenarios are illustrated using a two-country New Keynesian DSGE model with a Zero-Lower-Bound as an example. Dynare specific commands and numerical issues of the Newton algorithm are covered. Finally, we are going to re-implement the Perfect Foresight Algorithm in MATLAB and see that the results are exactly the same.