Making PredictionPerception Strategy Making 4 Rate Determination 1 2 3 5 Fundamental Factors Rate

In this study we used a new agent-based approach, an arti cial market approach, to support decision-making of exchange rate policies. We rst interviewed a dealer and found that the features of dealer interaction in learning were similar to features of genetic operations in biology. Next we constructed an arti cial market model using a Genetic Algorithm by regarding the market as a multi-agent system. Finally, using the computer simulation of the model, several strategic scenarios of rate policies were compared. As a result, it was found that intervention and the control of interest rates were e ective on the stabilization of yen-dollar rates in 1998.