If AI-driven productivity gains are strong enough, they could delay a market correction by masking the malinvestments fueled by years of easy credit. Lower costs and higher output might make weak investments appear sustainable, creating the illusion of stability. But if those gains slow or fail to offset underlying distortions, the correction remains inevitable.
Discussion
Aren’t sovereigns on their own, independently unsustainable debt path, even irrespective of market interventions during corrections?