🌿Adaptive Expectations Model in Dynare | MATLAB Macro Simulation🌿

In this lecture, we implement a simple macroeconomic model with adaptive expectations using Dynare and MATLAB. We translate the economic equations into Dynare syntax and simulate the model to study how government spending shocks and monetary shocks affect output and prices. This tutorial is designed for students learning computational macroeconomics, DSGE modelling, and Dynare basics. Topics covered in this lecture: • Aggregate demand and aggregate supply structure • Adaptive expectations formation • Translating macro models into Dynare code • Simulating impulse response functions (IRFs) • Effects of monetary and fiscal shocks • Role of the expectation adjustment parameter (λ) This is a useful introduction for students studying: Macroeconomic modelling DSGE models Computational economics Dynare simulations in MATLAB