AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Scott Sumner
Undertone
Embracing Deflation Due to Technological Progress
Deflation caused by technological progress, such as through inventions like AI and robots, can lead to a positive deflation scenario. By maintaining a target nominal GDP growth rate while experiencing real GDP growth from technological advancements, deflation can result in increased real wages for workers. In such a scenario, stable prices can be maintained by adjusting nominal GDP growth rates without affecting the rising real wages, hence demonstrating that deflation is not necessarily a problem when driven by productivity growth.
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode