If robots rise, interest rates will fail?
Very interesting & deep discussion at Davos last week.
The argument goes like this: As machines become more and more advanced, many workers will lose their jobs and others will see their wages fall. New technology will also increase the chances of a 1990s-style jump in productivity. Those forces will combine to restrain prices across the world economy, meaning that the era of slow inflation now challenging central bankers may only prove a sign of things to come.
Seems like a fair argument and we are already seeing a trend to follow this path. Just yesterday, Bank of Japan has announced sub-zero interest rate policy in order to reinflate the economy.
Advancement of robots/AI will definitely replace many of our current jobs. Particularly, labour-intensive ones and any business based on information arbitrage.
It will certainly change the notion of currency that we use today — will become as one of the temporary value transfer tools than only & almost eternal value transfer tool, so called Capital.
Human being will be certainly tested by the rise of robots.
