AI Paradox: Promise vs. Reality—What It Means for Monetary Policy

2026

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AI-generated summary

This paper examines the current and potential impacts of artificial intelligence on monetary policy, highlighting the challenges and opportunities it presents for central banks.

* Analyzes the "productivity paradox of AI" and its implications for economic growth.
* Explores how AI adoption affects labor markets, including job displacement and augmentation.
* Discusses the implications of AI for inflation dynamics and the role of monetary policy during economic transitions.

AI, monetary policy, productivity, labor market, inflation

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