AI productivity shock may pull inflation up or down – BoE blog – Central Banking
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Sectoral origin and speed of change will be key factors, economists find
An artificial intelligence-driven productivity shock may be inflationary or disinflationary depending on the sector in which it originates and the technology penetration rate, economists have found.
Jenny Chan, a member of the Bank of England’s external monetary policy committee (MPC) unit; Silvana Tenreyro, the newly appointed chief economist at the International Monetary Fund and a former MPC member; and PhD student Ludovica Ambrosino propose that the overall impact on inflation depends on
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