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We document that monetary policy has a substantial impact on innovation activities. After a tightening shock of 100 … basis points, research and development (R&D) spending declines by about 1 to 3 percent and venture capital (VC) investment …-based aggregate innovation index, declines by up to 9 percent in the following 2 to 4 years. Based on previous estimates of the …
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This paper looks at the implications for monetary policy of the widespread adoption of artificial intelligence and machine learning, which is sometimes called the "fourth industrial revolution". The paper reviews experiences from the previous three industrial revolutions, developing a template...
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