In a recent article posted by the Atlantic Council, BWC Member Hung Tran shares his perspective on how the Federal Reserve should approach the growing presence of AI through reflection on previous Fed Chair Alan Greenspan. Tran explains how Greenspan’s strong attention to detail led to productivity and thorough data analysis. Tran points out how improved technology during Greenspan’s time as Chair can be studied to help inspire the current economy on how best to respond to the increased development of AI. However, Tran points out that Greenspan’s patient approach to the gradual improvement in technology risks leading our current economy into sharp rise in inflation. Tran advises that economists get the balance right between overregulation preventing the flow of credit to the economy and safeguards causing financial stability risks. Overall, Tran concludes that learning from the experiences of Greenspan primarily regarding the AI boom is the best way to move the current U.S. economy forward.

To read the full article, click here.

All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.