News Summary

• Jesús Fernández-Villaverde, Howard Marks Presidential Professor of Economics at the University of Pennsylvania, and Maryam Farboodi, Associate Professor at Cornell SC Johnson College of Business, examine how investors are pricing the promise and risk of transformative AI.
• They discuss why Treasury yields fell following major AI announcements, whether high AI stock valuations reflect productivity gains or speculation, and what the dot-com era can teach us about today's AI boom.