Europe’s stability at risk if AI bubble bursts – ECB blog
Correction could freeze functioning of continent’s financial markets, say central bank economists
A bursting of the artificial intelligence bubble would have painful consequences for the eurozone’s economy, while the current interest rate environment could make it significantly harder for monetary authorities to cushion the blow, European Central Bank officials have concluded.
In a new blog post, the authors – Malin Andersson, Johannes Breckenfelder, Stefano Corradin, Kalin Nikolov and Maria Antonietta Viola – say a sharp correction in AI stock valuations would instantly hit eurozone
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