  We introduce a novel approach to solving dynamic programming problems, such
as those in many economic models, on a quantum annealer, a specialized device
that performs combinatorial optimization. Quantum annealers attempt to solve an
NP-hard problem by starting in a quantum superposition of all states and
generating candidate global solutions in milliseconds, irrespective of problem
size. Using existing quantum hardware, we achieve an order-of-magnitude
speed-up in solving the real business cycle model over benchmarks in the
literature. We also provide a detailed introduction to quantum annealing and
discuss its potential use for more challenging economic problems.
