Abstract
This paper presents a model of a speculative determination of exchange rates. The authors' basic claim is that speculation is intrinsically a disequilibrium phenomenon, mainly because the imperfect rationality of economic agents engenders heterogeneity of their beliefs, representations, and 'models of the world.' They use classifiers systems and genetic algorithms to simulate the behavior of learning agents and study the aggregate results in terms of prices and volume of transaction. Simulated exchange rates exhibit some of the distinctive properties characterizing real series. Copyright 1996 by WWZ and Helbing & Lichtenhahn Verlag AG
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