Business & Finance
Beyond Chips, IMF Sees AI Wealth Boom Adding to Inflation Risks
Key Points
Beyond Chips, IMF Sees AI Wealth Boom Adding to Inflation Risks Artificial intelligence may fuel inflation not just by driving up the cost of chips, but also by making consumers wealthier and more willing to spend, according to the International Monetary Fund’s chief economist. The AI investment boom is “generating tremendous valuations” for companies in US stock markets and in countries such as South Korea, creating a wealth effect that could add to price pressures, Pierre-Olivier...
Beyond Chips, IMF Sees AI Wealth Boom Adding to Inflation Risks
Artificial intelligence may fuel inflation not just by driving up the cost of chips, but also by making consumers wealthier and more willing to spend, according to the International Monetary Fund’s chief economist.
The AI investment boom is “generating tremendous valuations” for companies in US stock markets and in countries such as South Korea, creating a wealth effect that could add to price pressures, Pierre-Olivier Gourinchas said in an interview with Bloomberg News in Washington on Friday.