participants - 12th Edition Artificial Economics Rome 20th-21st September 2016

12th Artificial Economics Conference
co-located with Social Simulation Conference


Paper submission: April 18th 2016

Acceptance notification: June 6th 2016

Early registration: July 15th 2016


20th-21st September 2016

Interacting prudential and monetary policies: financial stability from the bottom up

Joeri Schasfoort, Antoine Godin, Dirk Bezemer, Alessandro Caiani and Stephen Kinsella


We present a stock-flow consistent, agent-based model (SFC-ABM, for short) building on work by Caiani et al (2015). Using Monte-Carlo simulation and analysis of system dynamics, we study the joint impacts of macroprudential and monetary policies. We find that the mix of macroprudential and monetary policies is a key determinant both of the probability of real-sector instability, and of the severity (e.g. in terms of GDP loss) of real-sector instability and that studying the combined effects of macroprudential and monetary policies leads to radically altered assessment of policy impacts, compared to analyses of the impacts of both policies in isolation.