AI and jobs: The hot new topic for central bankers
As competition for capital grows, central bank policymakers and researchers are scrutinizing the consequences of artificial intelligence on jobs.
TL;DR
- Central bankers are increasingly discussing the impact of artificial intelligence on monetary policy and the economy.
- AI is seen as a potential 'shock' that could fundamentally change monetary policy.
- Concerns exist about AI's effect on jobs and wage demands, even in a full employment economy.
- Asian economies are vulnerable to downturns in AI demand due to their role in the supply chain.
- Central bankers are considering the need to build fiscal and external buffers to respond to economic downturns.
- Despite debates about AI's impact, the world economy has shown surprising resilience.