Project description
Macroeconomic policies to prevent unemployment due to AI
Massive, rapid advancements in AI and renewable energy have caused disruptions across many sectors. These advancements are also expected to significantly boost productivity growth in the coming years. However, they will likely disrupt and redistribute economic activity among workers, countries, and sectors, potentially leading to negative consequences for citizens. The ERC-funded MACROGROWTH project will develop an innovative Keynesian growth model to design monetary and fiscal policies that ensure widespread welfare gains alongside productivity growth. This model will incorporate various technologies and realistic heterogeneity to highlight the necessary actions to prevent potential disasters from the spread of AI.
Objective
Rapid advances in artificial intelligence and renewable energy technologies may boost productivity growth over the coming years, but also cause a disruptive reallocation of economic activity among workers, firms, sectors and countries. How should monetary and fiscal policies be designed to ensure that these new technologies deliver productivity improvements and widespread welfare gains? In this proposal, I will address this fundamental question by developing a Keynesian growth framework – i.e. a unified theory of business cycles and growth – in which macroeconomic policies traditionally associated with aggregate demand management, such as monetary and cyclical fiscal policies, affect firms’ investment in new technologies and productivity.
In part I, I will develop a novel Keynesian growth model with multiple alternative technologies (e.g. human labor vs. artificial intelligence, dirty vs. clean energy), and realistic heterogeneity among households, firms and sectors. The framework will shed light on the trade-offs faced by central banks during the energy transition, on the macroeconomic policies needed to prevent the spread of artificial intelligence from causing technological unemployment, and on the macroeconomic management of the sectoral reallocation process driven by accelerations in technological change.
In part II, I will provide an open economy Keynesian growth model to study the interactions between capital flows, productivity growth and macroeconomic policies. I will use the framework to explain why the inception of the euro has fostered capital mobility, but not yet productivity convergence among member countries, to explore the impact of US monetary and fiscal policies on international value chains and global productivity, and to investigate the dual role played by the United States as center of the international monetary and technological systems.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
- social sciences economics and business economics production economics productivity
- social sciences sociology social issues unemployment
You need to log in or register to use this function
Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
-
HORIZON.1.1 - European Research Council (ERC)
MAIN PROGRAMME
See all projects funded under this programme
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
See all projects funded under this funding scheme
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2024-COG
See all projects funded under this callHost institution
Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
08005 Barcelona
Spain
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.