BIS paper explores how AI can predict asset demand
Better data availability and modelling techniques help central banks evaluate market reaction to QE
Artificial intelligence (AI) can help to inform central banks about the likely market reaction to asset purchase programmes, according to a Bank for International Settlements study.
The working paper, published on October 30, says AI can predict the securities investors would buy after selling some of their portfolios.
The authors – Xavier Gabaix, Ralph Koijen, Robert Richmond and Motohiro Yogo – say improved data availability and modelling techniques can help central banks to more accurately
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