Deputy Governor of the Bank of Japan Says AI Affects Core Parameters of Monetary Policy

Shinichi Uchida, Deputy Governor of the Bank of Japan, stated that artificial intelligence has become a key topic in monetary policy meetings of central banks around the world. The adoption of AI has both positive and negative impacts on productivity and the labor market. On the demand side, AI represents a significant positive demand shock, putting upward pressure on the economy and prices; on the supply side, AI may have a positive effect by enhancing productivity and promoting capital accumulation. Initially, the impact of AI is more evident on the demand side, overall leading to a more accommodative financial environment, but if corporate profits do not keep pace, there remains a risk of correction. He emphasized that AI will influence the core parameters of monetary policy, including the output gap, financial conditions, and the "star variables" that represent the long-term equilibrium of the economy.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.