IDEAS home Printed from https://ideas.repec.org/a/wsi/nmncxx/v01y2005i01ns1793005705000068.html
   My bibliography  Save this article

The Apprentice Wizard: Montetary Policy, Complexity And Learning

Author

Listed:
  • DOMENICO DELLI GATTI

    (Institute of Quantitative Methods and Economic Theory, Catholic University of Milan, Largo Gemelli1, I-20123, Milan, Italy)

  • EDOARDO GAFFEO

    (Department of Economics and CEEL, University of Trento, Via Inama 5, I-38100 Trento, Italy)

  • MAURO GALLEGATI

    (Department of Economics, Polytechnic University of Marche, Piaz.le Martelli 8, I-60121, Ancona, Italy)

  • ANTONIO PALESTRINI

    (Department of Law in Society and History, University of Teramo, Via Crucidi 122, I-64100 Teramo, Italy)

Abstract

This paper investigates some central issues of monetary policy by offering a model in which a central bank tries to stabilize fluctuations in aggregate output and inflation in an adaptive complex economy. We resort to evolutionary algorithms to model the central bank behaviour under discretion, and confront the efficiency of discretion with the choice of full commitment to a fixed rule.

Suggested Citation

  • Domenico Delli Gatti & Edoardo Gaffeo & Mauro Gallegati & Antonio Palestrini, 2005. "The Apprentice Wizard: Montetary Policy, Complexity And Learning," New Mathematics and Natural Computation (NMNC), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 109-128.
    • Handle: RePEc:wsi:nmncxx:v:01:y:2005:i:01:n:s1793005705000068
    DOI: 10.1142/S1793005705000068
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1793005705000068
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1793005705000068?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Xavier Gabaix, 2004. "Power laws and the origins of aggregate fluctuations," Econometric Society 2004 North American Summer Meetings 484, Econometric Society.
    2. Saint-Paul, Gilles, 2002. "The Complexity of Economic Policy: I. Restricted Local Optima in Tax Policy Design," IDEI Working Papers 142, Institut d'Économie Industrielle (IDEI), Toulouse.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Giri, Federico & Riccetti, Luca & Russo, Alberto & Gallegati, Mauro, 2019. "Monetary policy and large crises in a financial accelerator agent-based model," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 42-58.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrei A. Levchenko, 2005. "Financial Liberalization and Consumption Volatility in Developing Countries," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 237-259, September.
    2. Erzo G. J. Luttmer, 2004. "The size distribution of firms in an economy with fixed and entry costs," Working Papers 633, Federal Reserve Bank of Minneapolis.
    3. Gatti, Domenico Delli & Guilmi, Corrado Di & Gaffeo, Edoardo & Giulioni, Gianfranco & Gallegati, Mauro & Palestrini, Antonio, 2005. "A new approach to business fluctuations: heterogeneous interacting agents, scaling laws and financial fragility," Journal of Economic Behavior & Organization, Elsevier, vol. 56(4), pages 489-512, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:nmncxx:v:01:y:2005:i:01:n:s1793005705000068. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/nmnc/nmnc.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.