Poloz: AI revolution calls for looser policy
Central banks can take lessons from Greenspan’s policy during IT revolution, governor says
An artificial intelligence (AI)-led industrial revolution could require accommodative monetary policy to offset negative transitional effects, Bank of Canada governor Stephen Poloz says.
Lessons learned from previous industrial revolutions point to the need to allow supply-led economic expansions to run with loose policy, he says, as it is a “good way” to soften the blow for those harmed by the new technology.
Positive technology shocks in the past have been accompanied by disruption to
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