Evolutionary Strategies: A New Macroeconomic Policy Tool?

Evolutionary Strategies ; a New Macroeconomic Policy Tool ?

Previous work has used neural networks to predict the rate of inflation in Taiwan using four measures of ‘money’ (simple sum and three Divisia measures). In this work a new approach is developed that uses an evolutionary strategy as a predictive tool. This approach is simple to implement yet produces results that compare favourably with the neural network predictions. Our preferred inflation fo...

The Impact of Fiscal Policy on Macroeconomic Variables: New Evidence from a DSGE Model

The purpose of this article is to analyze the macroeconomic impacts of fiscal policy in Iran using a new-Keynesian Dynamic Stochastic General Equilibrium (DSGE) model. The model takes into account distortionary taxations on wage, dividend, and consumption, while government expenditures are broken down into consumption of goods and services, and investment. The model is calibrated for Iran based...

Environmental policy and macroeconomic dynamics in a new Keynesian model

This paper studies the dynamic behavior of an economy under different environmental policy regimes in a New Keynesian model with nominal and real uncertainty. We find the following results: (i) an emissions cap policy is likely to dampen macroeconomic fluctuations; (ii) staggered price adjustment alters significantly the performance of the environmental policy regime put in place; (iii) the opt...

Robustness and Macroeconomic Policy

This paper considers the design of macroeconomic policies in the face of uncertainty. In recent years, several economists have advocated that when policymakers are uncertain about the environment they face and find it difficult to assign precise probabilities to the alternative scenarios that may characterize this environment, they should design policies to be robust in the sense that they mini...

Macroeconomic Policy and Performance