Economy

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Learning to Love the AI Bubble

  • Frontiers

  • Opinion & Analysis
  • Read Time: 5 min 

All bubbles are different. Bubbles occur when the market value of assets decouple from their intrinsic value and expectations of rising valuations generate investor demand. Many ambitious infrastructure projects that produced canals, railways, and telecom networks were fueled by bubbles. Unlike the housing bubble, the effects of a bursting AI bubble wouldn’t cause great harm.

Why We Need New Measures of the U.S. Economy

The Information Age has revolutionized how we shop, travel and entertain ourselves—and yet we know little about how digitization has impacted the economy. That’s because the main gauge of economic growth, Gross Domestic Product, doesn’t capture much of the value created by “information goods.”

Expert Opinions on the Economy

  • Blog

Harvard’s Martin Feldstein and MIT’s Simon Johnson offer insights on the economy and the banking system.

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