#AI #OpenAI Questions with Yes or No answers to #ChatGPT on central banks’ monetary policies.

I asked ChatGPT:

"Is bank credit a key element in the transmission mechanism of central banks’ monetary policies?" 

Answer Yes or No.

ChatGPT answered:

YES

I asked ChatGPT:

"Do the risk weighted bank capital/equity requirements distort the allocation of bank credit?" 

Answer Yes or No.

ChatGPT answered:

YES

I asked ChatGPT:

"Is that distortion considered by the central banks?"

 Answer Yes or No.

ChatGPT answered:

NO

I said: Thanks!

It answered: You're welcome! Let me know if you have more questions.

PS. Here's a previous lengthier dialogue with ChatGPT on this subject.

PS. Could the risk-free interest rate be affected by credit risk weighted bank capital/equity requirements?

PS. A five points comment: Have you ever heard a central banker opine on that credit risk weighted bank capital requirements can distort their monetary policy? 

Here my many other questions to ChatGPT – OpenAI on bank regulations