BIS predicts AI will be inflationary in long term
Expects accelerated inflation dynamics as firms adjust prices in response to shocks
The impact of artificial intelligence (AI) on the economy and financial system will be “profound”, the Bank for International Settlements (BIS) said on June 25, predicting higher inflation in the long term.
The BIS released a chapter of its Annual Economic Report on the AI revolution early, before the full report goes live on June 30.
AI is expected to raise productivity over the next 15 years. But, according to the BIS’s models, the effect could be inflationary or disinflationary in the short
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com test test test
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com test test test
More on Fintech
Benchmarking AI in central banks – a question of creative destruction
Central banks are taking cautious steps towards adopting AI but have not prioritised research into its effects
Synchronisation can support tokenised securities settlement – BoE
But central bank says it is unclear whether it outperforms unified ledger
Sarb finds ‘no compelling need’ for a retail CBDC
Central bank pivots towards wholesale version while modernising national payments system
AI agents can manage liquidity, researchers find
BIS/BoC paper encourages policy-makers to lay groundwork for broader adoption in financial markets
Cash is the tender of last resort – panel
Officials at Central Banking Autumn Meetings discuss risks of long-term outages in era of digital payments
Confusion reigns over EU multi-issuance stablecoins regs
EBA seeking clarification from EC over assets’ legality after ECB’s and ESRB’s calls for ban
BoE proposes changes to systemic stablecoin regime
Breeden says aim is to ‘build trust’ as issuers no longer have to hold 100% of reserves at bank
HKMA-BCB trade finance link could be gamechanger, says expert
CBDC blockchain experiment has potential to boost global commerce, UN adviser tells Central Banking