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dc.contributor.author Fornaro, Luca
dc.contributor.author Wolf, Martin
dc.date.accessioned 2021-07-28T12:13:51Z
dc.date.available 2021-07-28T12:13:51Z
dc.date.issued 2022-09
dc.identifier.uri http://hdl.handle.net/10230/48298
dc.description.abstract We provide a framework in which monetary policy affects firms’ automation decisions (i.e. how intensively capital and labor are used in production). This new feature has far-reaching consequences for monetary policy. Monetary expansions can increase output by inducing firms to invest and automate more, while having little impact on inflation and employment. A protracted period of weak demand might translate into less investment and deautomation, rather than into deflation and involuntary unemployment. Running the economy hot, through expansionary monetary and fiscal policies, may have a positive long run impact on labor productivity and wages. Technological advances that increase the scope for automation may give rise to persistent unemployment, unless they are accompanied by expansionary macroeconomic policies.
dc.format.mimetype application/pdf
dc.language eng
dc.language.iso eng
dc.title Monetary policy in the age of automation
dc.type info:eu-repo/semantics/workingPaper
dc.subject.keyword Monetary policy
dc.subject.keyword Automation
dc.subject.keyword Fiscal expansions
dc.subject.keyword Hysteresis
dc.subject.keyword Liquidity traps
dc.subject.keyword Secular stagnation
dc.subject.keyword Endogenous productivity
dc.subject.keyword Wages
dc.subject.keyword Inflation
dc.rights.accessRights info:eu-repo/semantics/openAccess

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