Tag: IMF

The current artificial intelligence investment surge, while showing parallels to the 1990s dot-com bubble, is unlikely to trigger a systemic financial crisis, according to IMF Chief Economist Pierre-Olivier Gourinchas. He highlights that unlike previous speculative manias, AI investment is largely funded by cash-rich tech firms rather than excessive debt, mitigating broad financial system risks. However, a potential correction could still lead to significant asset repricing and stress on non-bank financial institutions.