AI abundance and the demise of the 2% inflation target
seldondev · reddit · 2026-08-24
This article explores how the productivity boom driven by AI (the age of abundance) could disrupt the traditional 2% inflation target. It argues that as AI significantly lowers the production costs of goods and services, deflationary pressures may become the norm, requiring fundamental adjustments to existing monetary policy frameworks to adapt to the new economic reality.
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