Anton Korinek (University of Virginia) - Monetary Policy in the Age of AI

Research seminars

Research Seminar - Anton Korinek (University of Virginia) - Monetary Policy in the Age of AI

Co-author: Mikael Juselius (BIS)

Abstract
If artificial intelligence experiences the predicted take-off, the first-best would entail a significant amount of resources flowing into the accumulation of compute and robots. In this scenario, the relative price of labor would go down, the relative price of consumption goods would go up, and the natural rate of interest would rise. Pricing frictions inhibit the optimal reallocation of resources in two ways, by keeping wages too high and consumer good prices too low, therefore generating unemployment and a slump in the production of consumer goods. We study the tensions that monetary policy will experience during this transition.

 

Online Research seminars organized by the Bank of Finland's Research Unit are open to all researchers interested in the subjects covered. Those wishing to attend a seminar are kindly asked to register in advance, by filling in the Online Registration Form.

The registration for each seminar is open until 9:00 am the day of the seminar. You will receive a link to join the seminar by email at the latest one hour before the seminar is scheduled to begin.