Monetary Policy and Wealth Growth: AI-Enhanced Analysis of Dual Equilibrium in Product and Money Markets within Central and Commercial Banking

Qishuo Cheng; Lichen Qin; Jinxin Xu; Han Wang; Yuqiang Zhong

doi:10.5281/zenodo.11032288

Authors

Qishuo Cheng University of Chicago
Lichen Qin University of Rochester
Jinxin Xu Southern Methodist University
Han Wang University of Southern California
Yuqiang Zhong Henan Agricultural University

DOI:

https://doi.org/10.5281/zenodo.11032288

References:

35

Keywords:

Monetary Policy, Inflation Forecast, The Pattern Of Wealth Growth, Central Bank, Artificial Intelligence

Abstract

In recent years, the rapid development of artificial intelligence technology has promoted the digital transformation of the financial field. Artificial intelligence technology began in the 1950s, and with the development of computer science, big data analysis and other fields, it has entered the third wave. In terms of natural language processing (NLP), new technologies such as generative artificial intelligence and large-scale pre-training models are gradually maturing, and the large language model represented by ChatGPT marks a major breakthrough in related algorithms. This article combines the monetary policy adopted by central banks after the global financial crisis, the examination of wealth growth patterns, and the application of artificial intelligence in financial analysis. In the aftermath of the financial crisis, central banks adopted large-scale asset purchase programs to stabilize financial markets, but they also created inflation risks. However, central banks have been challenging in forecasting inflation, largely because existing forecasting models have failed to accurately account for changes in inflation expectations. It also discusses the importance of wealth growth patterns and the potential role of artificial intelligence in financial analysis. These contents are of great significance for understanding the double equilibrium between central banks and commercial banks in the money market and its impact on the economy.

Author Biographies

Qishuo Cheng, University of Chicago

Department of Economics, University of Chicago, Chicago, IL, USA.

Lichen Qin, University of Rochester

Department of Computer Science, University of Rochester, Rochester, NY, USA.

Jinxin Xu, Southern Methodist University

Department of Cox Business School, Southern Methodist University, Dallas, TX, USA.

Han Wang, University of Southern California

Department of Mathematics, University of Southern California, Alhambra, CA, USA.

Yuqiang Zhong, Henan Agricultural University

Department of Information and Computer Sciences, Henan Agricultural University, Shenzhen, Guangdong, China.

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