AI Boom Tests Efficacy of Traditional Monetary Policy Transmission

The article questions whether central bank rate hikes still effectively curb capital appetite and inflation in the context of the AI-driven boom, particularly among big tech firms. It suggests that traditional monetary policy transmission may be weakening as AI investment is driven by long-term strategic factors rather than interest rate sensitivity. The piece is analytical and forward-looking, with no new data or events, but highlights a growing debate among economists and policymakers.

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