An accommodating monetary policy followed by a sudden increase of the short term interest rate often leads to a bubble burst and to an economic slowdown. Two examples are the Great Depression of 1929 and the Great Recession of 2008. Through the implementation of an Agent Based Model with a...

Introduction to agent-based economics -- Decentralized interacting macroeconomics and the agent-based "modellaccio" -- AD-AS representation of macroeconomic emergent properties -- Heterogeneity in macroeconomics: DSGE and agent-based model approach -- Early warning indicator for crises in an...