Peterson Institute for International Economics

The DeepSeek application appears on a smartphone screen in this photo illustration taken on October 2, 2025.

Photo Credit: Nikolas Kokovlis/NurPhoto

How the AI boom shrugged off the DeepSeek shock and keeps gaining steam

The year has started with doubts about the prospects for US AI labs and cloud computing firms due to rising debt, depreciation, and circular vendor financing. Revisiting 2025’s DeepSeek shock shines light on the AI boom’s future prospects, Martin Chorzempa writes.

Shipping containers stand stacked in the Port of Seattle in Seattle, Washington. Photo taken on August 11, 2025.

ZUMA Press Wire/© M. Scott Brauer

Photo Credit: ZUMA Press Wire/© M. Scott Brauer

RealTime Economics

Trump's trade war wreaked little havoc on trade patterns last year

Gary Clyde Hufbauer (PIIE) and Ye Zhang (PIIE)

February 2, 2026

A man carries the US flag outside the US Supreme Court in Washington, DC, as its justices are set to hear oral arguments on President Trump's bid to preserve sweeping tariffs. Picture taken on November 5, 2025.

REUTERS/Nathan Howard

Photo Credit: REUTERS/Nathan Howard

Policy Briefs

Can Trump keep his tariffs if the Supreme Court invalidates them?

Alan Wm. Wolff (PIIE)

February 3, 2026

Computer chip and AI label is shown in this photo illustration.

IMAGO/Christian Ohde via Reuters Connect

Photo Credit: IMAGO/Christian Ohde via Reuters Connect

RealTime Economics

AI futures: Planning for transformative scenarios before they hit

Era Dabla-Norris (International Monetary Fund) and Anton Korinek (PIIE)

February 3, 2026

The US Federal Reserve Building in Washington, DC. Photo taken on February 26, 1999.

REUTERS/Win McNamee

Photo Credit: REUTERS/Win McNamee

Op-Eds

The real Greenspan lesson for Warsh on inflation

Jason Furman (PIIE)

February 12, 2026

via Financial Times

What's New

The real Greenspan lesson for Warsh on inflation

Jason Furman (PIIE)

February 12, 2026

via Financial Times

The WTO flag is pictured at its headquarters in Geneva. World Trade Organization (CC BY-SA 4.0).

Can smaller economies really create a new world trade order? Yes, they can.

Alan Wm. Wolff (PIIE)

February 12, 2026

Argentina's Central Bank is pictured in Buenos Aires, Argentina. Photo taken on January 31, 2025.

Argentina's fragile monetary framework risks renewed volatility

Maurice Obstfeld (PIIE)

February 11, 2026

A sign indicating digital yuan is pictured on a vending machine at a subway station in Shanghai, China.

China gives up on state-backed digital cash: The US and Europe should take note—for different reasons

Martin Chorzempa (PIIE)

February 10, 2026

PIIE Charts

The Trump administration wants foreign investment pledges to boost several sectors that Biden targeted

Gregory Auclair (PIIE) and Adnan Mazarei (PIIE)

February 11, 2026

Trump's tariff revenue tracker: How much is the US collecting? Which imports are hit?

Gary Clyde Hufbauer (PIIE) and Ye Zhang (PIIE)

February 2, 2026

Some countries will struggle to fulfill their investment pledges to President Trump

Gregory Auclair (PIIE) and Adnan Mazarei (PIIE)

January 29, 2026

China’s private-sector rebound continued in 2025, fueled by “new economy”

Tianlei Huang (PIIE) and Nicolas Véron (PIIE)

January 20, 2026

Trade Winds

Is the World Trade Organization at a crossroads?

February 18, 2026, 9:00 AM to 10:00 AM EST

Cecilia Malmström (PIIE), Petros C. Mavroidis (Columbia Law School), Mona Paulsen (London School of Economics and Political Science Law School) and Victor do Prado (Brazilian Centre of International Relations)

Feb

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