At the Richmond Fed: Talking Technology-Enabled Disruption
Abstract: Understanding the economic effects of technological change — and of the world-changing disruptions that new technologies may bring about — is important for central bankers. Maintaining price stability means paying attention to how technology empowers buyers to shop for lower prices, for example, adding pressure on the margins of sellers. Maintaining maximum employment means closely watching how technology restructures or eliminates jobs, adding pressure on the income gains and productivity growth of workers. Technology-enabled disruption also influences business investment: Companies facing one or more disruptive competitors may be moved to invest more — or become more cautious about expanding their capacity and investing in major capital projects.
File format is application/pdf
Description: Journal Article
Provider: Federal Reserve Bank of Richmond
Part of Series: Econ Focus
Publication Date: 2023