An economist at the International Monetary Fund has developed an agent-based model of the banking system, which he says could form a building block for more complex models.
Jorge Chan-Lau outlines the model in a working paper published on June 9. He sets out to study how the banking network changes over time, both as a result of the complex interactions of agents within the system, and regulatory requirements imposed from outside.
Chan-Lau writes that to understand such complex interactions, a
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