If the global economy dumps all excess capital into the data center construction boom then (Cambridge equation) i.e. the lowest real interest rate possible.
Ceteris paribus, positive supply shocks cause deflation, not inflation. (To be clear, deflation is really bad and should be offset by the central bank.)
This seems backwards?
If the global economy dumps all excess capital into the data center construction boom then
Ceteris paribus, positive supply shocks cause deflation, not inflation. (To be clear, deflation is really bad and should be offset by the central bank.)
If the economy is automated, g will be >>20%, and so will r.
Okay but that’s an entirely different discussion than “building datacenters will make real interest rates go up”?