The US$600 trillion question: Inflate or innovate?

GLOBAL wealth accumulation this century has far outstripped economic growth, and the performance of that US$600 trillion of savings over the next decade rests heavily on how the gap is closed – a productivity boost or sustained inflation.

Financial markets have become increasingly agitated about whether investors chase the parabolic rise in artificial intelligence (AI) stocks and bet on AI adoption more broadly, or hedge fears of a prolonged inflation burst due to lax money and fiscal policies worldwide.