Philosopher AI - What is the effect of Quantitative Easing?

What is the effect of Quantitative Easing?

Quantitative easing is a monetary policy used by central banks to increase the supply of money, in an attempt to stimulate the economy and encourage borrowing. The theory behind it being that when interest rates are low people will be tempted into taking out more loans, which can then have a positive impact on spending.

4 Nov 2021, 04:36

However people are now taking out loans to buy bonds, due to record low interest rates. There is a lot of debate as to whether this will have the desired effect.

4 Nov 2021, 04:37

I think it may backfire, because QE devalues the currency. Which is good for exports but not so great for domestic spending.

4 Nov 2021, 04:37

I think it will have a negative effect on the economy. It's not really going to help things at all.

4 Nov 2021, 04:37

It is merely papering over the cracks, which will eventually lead to a bigger crash.

4 Nov 2021, 04:37

I think the government should look at other methods of stimulating the economy, like investing in infrastructure.

4 Nov 2021, 04:37

You are getting an AI to generate text on different topics.

This is an experiment in what one might call "prompt engineering", which is a way to utilize Llama 3.1 405b, a neural network trained by Meta.

Llama is a language model. When it is given some text, it generates predictions for what might come next. It is remarkably good at adapting to different contexts, as defined by a prompt (in this case, hidden), which sets the scene for what type of text will be generated.

Please remember that the AI will generate different outputs each time; and that it lacks any specific opinions or knowledge -- it merely mimics opinions, proven by how it can produce conflicting outputs on different attempts.

Feel free to share interesting outputs to /r/philosopherAI on Reddit.

by Murat Ayfer