AI-based forecasting and market expectations
a self-fulfilling prophecy?
Informazioni aggiuntive
Autori
Beretta E.,
Dianova V.,
Pankratz G.,
Schollmeyer U.
Tipo
Articolo pubblicato in rivista scientifica
Anno
2025
Lingua
Inglese
Sommario
The European Union has been a pioneer in creating a comprehensive legal framework on artificial intelligence (AI). However, some nuanced risks of advancing technologies may be easily overseen. In this research note, we consider the possible impact of accessible AI on the formation of monetary policy expectations and evaluate the implications for monetary policy implementation by central banks. We offer a conceptual model of AI-driven self-fulfilling economic prophecies and discuss eight strategies that central banks may adopt in response to these dynamics. Central banks may face significant challenges in adapting monetary policy frameworks to broad-based AI-driven forecasting, but the rapid pace of technological evolution suggests this task should be a priority.
Parole chiave
Artificial intelligence (AI), Central banks, Market expectations, Monetary policy, Self-fulfilling prophecy
Periodico
Review of Political Economy
Pagine (o numero dell’articolo)
1-16
Diffusione
Licenza
CC BY-NC-ND
Visibilità
Pubblico
Status open access
Hybrid
