The Behavior of the Exchange Rate in the Genetic Algorithm and Experimental Economies
研究Kareken-Wallace世代交叠模型中汇率的动态行为，发现遗传算法下汇率持续波动，且与人类实验中的波动特征一致。
This paper studies the behavior of the exchange rate in the Kareken-Wallace overlapping generations economy with two currencies in which decision rules are updated using the genetic algorithm. The analysis shows that a stationary monetary equilibrium of the Kareken-Wallace model is not stable under the genetic algorithm dynamics. The fluctuations in the genetic algorithm exchange rate are driven by fluctuations in the portfolio fractions, which change over time in response to the inequality between the rates of return on two currencies. Further, both the genetic algorithm simulations and the experiments with human subjects were characterized by continuing fluctuations of the exchange rate. Copyright 1996 by University of Chicago Press.