I’d call it deflationary, not disinflationary. There is the risk that we could go into deflation with the economic consequences resulting with that.
Though speaking for the US, it would give a lot more leverage to print away debt (ie buy down long term rates) allowing the fed to counteract the deflationary pressures from AI.
gdirrty216 on
A rich man’s disinflation is the poor man’s wage deflation.
In all seriousness, that’s actually what Northern Trust and other macro tend analysts have been saying; AI is going to be an employment disruption technology of the likes we have never seen, but it will be happening at a time when industrialized counties are grappling with a demographic cliff that is unprecedented.
Combine that with fiat currency debt levels that can never be paid back without massive money printing, and you have competing forces that may actually keep inflation at in the 3-5% range, which might be sustainable if AI can mitigate the giant problems in medical costs for the aging populations.
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I’d call it deflationary, not disinflationary. There is the risk that we could go into deflation with the economic consequences resulting with that.
Though speaking for the US, it would give a lot more leverage to print away debt (ie buy down long term rates) allowing the fed to counteract the deflationary pressures from AI.
A rich man’s disinflation is the poor man’s wage deflation.
In all seriousness, that’s actually what Northern Trust and other macro tend analysts have been saying; AI is going to be an employment disruption technology of the likes we have never seen, but it will be happening at a time when industrialized counties are grappling with a demographic cliff that is unprecedented.
Combine that with fiat currency debt levels that can never be paid back without massive money printing, and you have competing forces that may actually keep inflation at in the 3-5% range, which might be sustainable if AI can mitigate the giant problems in medical costs for the aging populations.