Vice Governor of the Bank of Japan, Shinichi Uchida, stated that the surge in demand caused by artificial intelligence is driving inflationary pressures and long-term interest rates, which may have complex impacts on neutral interest rates. Artificial intelligence, as a positive demand shock, brings upward pressure to the economy and prices, while also affecting the supply side by increasing productivity and enhancing capital stock. The large-scale issuance of bonds by technology companies has pushed up long-term yields, making financial conditions tense. Artificial intelligence may render certain forms of human capital obsolete and impact social inequality. (Source: Jin Shi)
