Control approaches to economic modeling: Application to inflation targeting

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

In this chapter, a control system approach that is based on artificial intelligence is adopted to analyze the inflation targeting strategy. The input/output model is constructed using a multi-layered perceptron network and a closed loop control strategy is adopted using a genetic algorithm to control inflation through the manipulation of interest rates. Given the historical inflation rate data, a control scheme is used to determine the interest rate that is required to attain the given inflation rate. The calculated interest rate is then compared to the historical inflation rate to evaluate the effectiveness of the control strategy.

Original languageEnglish
Title of host publicationAdvanced Information and Knowledge Processing
PublisherSpringer London
Pages215-231
Number of pages17
Edition9781447150091
DOIs
Publication statusPublished - 2013

Publication series

NameAdvanced Information and Knowledge Processing
Number9781447150091
ISSN (Print)1610-3947
ISSN (Electronic)2197-8441

ASJC Scopus subject areas

  • Management Information Systems
  • Information Systems
  • Information Systems and Management
  • Artificial Intelligence

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