You might think economists would have a simple handle on such a straightforward query, but the both macroeconomics and AI are complex. Nevertheless, I have a bold prediction: Real inflation-adjusted rates will go up, and for a considerable period of time.
The conventional wisdom is that rates tend to fall as wealth and productivity rise. It is easy to see where this view comes from, as real rates of interest have been generally falling for four decades. As for the theory, lending becomes safer over time, especially as the wealth available for saving is higher.
My counterintuitive prediction rests on two considerations. First, as a matter of practice, if there is a true AI boom, or the advent of artificial general intelligence (AGI), the demand for capital expenditures (capex) will be extremely high. Second, as a matter of theory, the productivity of capital is a major factor in shaping real interest rates. If capital productivity rises significantly due to AI, real interest rates ought to rise as well.
ãã®èšäºã¯ Business Standard ã® March 30, 2024 çã«æ²èŒãããŠããŸãã
7 æ¥éã® Magzter GOLD ç¡æãã©ã€ã¢ã«ãéå§ããŠãäœåãã®å³éžããããã¬ãã¢ã ã¹ããŒãªãŒã8,500 以äžã®éèªãæ°èã«ã¢ã¯ã»ã¹ããŠãã ããã
ãã§ã«è³Œèªè ã§ã ?  ãµã€ã³ã€ã³
ãã®èšäºã¯ Business Standard ã® March 30, 2024 çã«æ²èŒãããŠããŸãã
7 æ¥éã® Magzter GOLD ç¡æãã©ã€ã¢ã«ãéå§ããŠãäœåãã®å³éžããããã¬ãã¢ã ã¹ããŒãªãŒã8,500 以äžã®éèªãæ°èã«ã¢ã¯ã»ã¹ããŠãã ããã
ãã§ã«è³Œèªè ã§ã? ãµã€ã³ã€ã³
NEET-UG retest on June 23: Centre to SC
The grace marks of 1,563 National Eligibility-cumEntrance Test-Undergraduate (NEET-UG) 2024 candidates will be scrapped, and they have been given the option to appear for a re-test on June 23, the Centre informed the Supreme Court on Thursday.
Amid high demand, developers ramp up uber-luxury projects
Sales of opulent homes in India skyrocketed by 75 per cent last year
PSU stocks may see gains under Modi 3.0
'Limited upside in premium valuation if reforms slow down'
Crompton Greaves: Strong prospects already priced in
Good results for the January-March quarter (Q4) of FY24 and strong seasonal demand have led to strong investor interest in Crompton Greaves (CG) Consumer Electricals which is hitting new highs.
HERO, JSW ENERGY AMONG 7 MIDCAP STOCKS LIKELY TO GET LARGECAP TAG
Mutual funds' largecap investment universe is expected to see seven changes in the upcoming stock reclassification exercise by the Association of Mutual Funds in India (Amfi).
Markets hit fresh peak after inflation cools off
Equity benchmark indices Sensex and Nifty hit their fresh record levels on Thursday after lower inflation numbers raised hopes of an interest rate cut by the Reserve Bank of India (RBI).
SME IPOs raise â¹3,000 crore in H1'24
Highest fundraising in first half of a calendar year since SME option debut in 2012
Decentralising development
Reforms must be initiated to strengthen local bodies
India's competitive politics and outcomes
Fund managers and market analysts must stop fretting about 'big bang' reforms
India's neglected development transformation
The election is done.