
I’m an incoming PhD student in Economics at Emory University.
My research interests include macroeconomics, financial economics, and machine learning.
I’m an incoming PhD student in Economics at Emory University.
My research interests include macroeconomics, financial economics, and machine learning.
Reinforcement learning provides a framework for solving dynamic optimization problems. This article offers a direct example of applying Q-learning to train an agent that conducts monetary policy in a simplified economic environment. This project is broken down into three core coding sections. I begin by defining the EconomyEnv class, which simulates the simplified economy and contains its fundamental rules, including the state variables (inflation, interest rate) and the agent’s action space. Next, I build the QLearningAgent class, whose responsibility is to learn the optimal policy by updating its Q-table based on rewards. The final section brings these two together, managing the training process, hyperparameter settings, and the discretization of the continuous state space required for a tabular Q-learning approach. ...