The agent-based framework provides an useful computational facility for economics, where performing experiments on policy design issues in a realistic environment, characterized by non-clearing markets and bounded rational agents (see Tesfatsion and Judd, 2006, for a recent survey). Under this respect, this study addresses the issue of monetary policy design by investigating an appropriate rule for the central bank interest rate. Our work consists in pursuing a general equilibrium approach to the problem by considering a multi-market economy characterized by a goods, a labor and a credit market, where agents are price makers on the supply side and act according to sensible rules of thumb. A previous paper (Raberto et al., 2006) by the authors showed the absence of real effects of monetary policy in an agent-based model characterized by price-taking agents. However, if agents are price makers, prices may be set far away from their market clearing values, thereby allowing potential real effects of monetary

Monetary policy experiments in an artificial multi-market economy with reservation wages

Teglio, Andrea;
2007-01-01

Abstract

The agent-based framework provides an useful computational facility for economics, where performing experiments on policy design issues in a realistic environment, characterized by non-clearing markets and bounded rational agents (see Tesfatsion and Judd, 2006, for a recent survey). Under this respect, this study addresses the issue of monetary policy design by investigating an appropriate rule for the central bank interest rate. Our work consists in pursuing a general equilibrium approach to the problem by considering a multi-market economy characterized by a goods, a labor and a credit market, where agents are price makers on the supply side and act according to sensible rules of thumb. A previous paper (Raberto et al., 2006) by the authors showed the absence of real effects of monetary policy in an agent-based model characterized by price-taking agents. However, if agents are price makers, prices may be set far away from their market clearing values, thereby allowing potential real effects of monetary
Artificial Markets Modelling
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/3699394
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