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Yes, there is an AI investment bubble – here are three scenarios for how it could end

By Sergi Basco, Profesor Agregado de Economia, Universitat de Barcelona

Booms and busts are a recurring feature of modern economics, but when an asset’s value becomes overinflated, a boom quickly becomes a bubble.

The two most recent major bubble episodes were the dot-com bubble in the United States (1996-2000) and the housing bubbles that emerged around 2006 in different countries. Both ended in recession – the former relatively mild, and the latter catastrophically…

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