Artificial general intelligence may not lead to the deflationary future some investors expect, according to Harvard professor and former IMF Chief Economist Ken Rogoff.
What Happened: Appearing on the Dwarkesh Patel Podcast earlier in the month, Rogoff warned that AGI could actually push inflation up, keeping pressure on interest rates to stay higher for longer, amid growing demand for energy and infrastructure capital expenditures.
“AGI and AI are upward pressures on interest rates,” he says, adding that with “the huge energy needs [and] the capital investment, you’re going to see even more spending, not less.”
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This is in sharp contrast to other economists and experts, who have since commented on AI and artificial general intelligence being broadly deflationary. Rogoff, …