Fornaro, LucaWolf, MartinUniversitat Pompeu Fabra. Departament d'Economia i Empresa2024-11-142024-11-142021-07-01http://hdl.handle.net/10230/68652We 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 tightenings may depress firms' use of automation technologies and labor productivity, even permanently, while having a transitory impact on inflation and employment. A protracted period of weak demand might translate into less investment and de-automation, rather than into deflation and involuntary unemployment. Technological advances that increase the scope for automation may give rise to persistent unemployment, unless they are accompanied by expansionary macroeconomic policies.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative CommonsMonetary policy in the age of automation<resourceType xmlns="http://datacite.org/schema/kernel-3" resourceTypeGeneral="Other">info:eu-repo/semantics/workingPaper</resourceType><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">monetary policy</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">automation</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">fiscal expansions</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">hysteresis</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">liquidity traps</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">secular stagnation</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">endogenous productivity</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">wages</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Macroeconomics and International Economics</subject><rights xmlns="http://datacite.org/schema/kernel-3">info:eu-repo/semantics/openAccess</rights>