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Slides and Codes: https://mutschler.eu/teaching/perfect... We cover deterministic simulations in DSGE models also known as perfect foresight simulations and how one can do this in Dynare. 1) We will cover very briefly the intuition behind this method. 2) We are going to illustrate several scenarios which you can analyze using a two-country New Keynesian DSGE model as an example. 3) We will go through the Dynare specific commands that you need know. 4) We will go under the hood and derive the Newton type algorithm that Dynare uses and discuss some numerical issues we need to deal with. 5) To make sure that we really understand the algorithm and the way Dynare computes deterministic simulations, we are going to re-implement it manually in MATLAB and then see that the results are exactly the same. *Timestamps* 00:09 - Introduction 01:15 - Recap Deterministic Simulations under Perfect Foresight 05:08 - Example Two-Country NK model with ZLB: overview 08:15 - Example Two-Country NK model with ZLB: Temporary Monetary Policy Shock 11:56 - Example Two-Country NK model with ZLB: Pre-Announced Temporary Monetary Policy Shock 13:42 - Example Two-Country NK model with ZLB: Permanent Increase Inflation Target (Surprise) 15:39 - Example Two-Country NK model with ZLB: Pre-Announced Permanent Increase in future tax rates 18:45 - Dynare Specifics: Commands and Under the Hood 21:59 - General DSGE Framework under Perfect Foresight 23:50 - Two-Boundary Value Problem 25:25 - Newton Method 27:21 - The Perfect Foresight Algorithm 29:14 - Controlling Newton Algorithm in Dynare 30:04 - Initial Guess for Newton Algorithm 31:13 - Infinite Horizon Problems 32:40 - Jacobian 39:14 - Re-Implementation of Perfect Foresight Algorithm in MATLAB 54:47 - Outro and References