Former Federal Reserve Bank of Chicago President Evans: AI can boost productivity but may exacerbate inflation
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Artificial intelligence may lead to unemployment and labor market mismatch. In such cases, an accommodative monetary policy may have little effect in resolving structural inefficiencies and could potentially exacerbate inflationary pressures. Monetary policy alone cannot address the labor market mismatch caused by artificial intelligence; such transformation issues may require fiscal, business, or broader coordinated measures.
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