We are pleased to announce a new blog post on the SUARA SEACEN Blog:
Economics of Artificial Intelligence and the Future of Monetary Policy
by Ceyhun Elgin and Meltem Chadwick
Our new blog, “Economics of Artificial Intelligence and the Future of Monetary Policy,” is based on Professor Ceyhun Elgin’s presentation at The SEACEN Centre’s online course, “Practical Use of AI in Monetary Policy,” held on 28–30 April 2026.
The blog examines AI from a macroeconomic standpoint. Instead of viewing AI only as a new technology or productivity booster, it considers what occurs when the costs of prediction, search, synthesis, classification, and decision support drop significantly.
For central banks, this is important because AI could influence multiple areas of the economy simultaneously: productivity, labour markets, wage formation, price-setting behaviour, commodity markets, financial conditions, data, and expectations.
This complexity makes it challenging to categorise AI strictly as a supply or demand shock. The blog explains why central banks must carefully analyse these channels, without assuming that AI will have a simple or predictable impact on monetary policy.
Click here to read.
