Schumpeter asserted that there were two types of business cycle theories: one in which cycles reflected dampened economic behavior and another in which cycles reflect explosive economic behavior. Both of these theories allowed that cycles could be either monotonic or oscillating. In this working...

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,...