Essay Question: "How do you forecast AI will affect the market for creative professionals such as novelists, musicians and artists?"
Guidelines to write the essay
Due to the broad nature of this question, we expect most candidates will focus on a subset of the topics listed. Quality over quantity - a coherent, well-supported narrative is what we're looking for! Don't get discouraged due to the complexity and breadth of the question! We're looking for thoughtful discussions of the issue, even if you only discuss one aspect of the debate. Moreover, there is no need to use diagrams, equations or models in your response unless you believe this will support your narrative.
Broadening mandates has the potential of leading to sustainable and inclusive economic growth. However, the questions of whether central banks are the correct institution to address these concerns, as well as how such a shift could affect the independence of central banks still remain. Nevertheless, the consideration of inequality, unemployment and climate change would certainly have significant implications for monetary policy.
The sources below can be separated into two categories: one focusing on the trade-off between unemployment and inflation and the second on wider debates about whether inequality and climate change should be considered when implementing monetary policy. These are two important discussions currently taking place in macroeconomics and in central banks more specifically.