2026-04-13T03:05:37Zhttps://recercat.cat/oai/request

oai:recercat.cat:10230/482982025-12-18T01:49:34Zcom_2072_6col_2072_452953

00925njm 22002777a 4500 dc Fornaro, Luca author Wolf, Martin author 2021-07-28T12:13:51Z 2021-07-28T12:13:51Z 2022-09 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. Monetary policy Automation Fiscal expansions Hysteresis Liquidity traps Secular stagnation Endogenous productivity Wages Inflation Monetary policy in the age of automation