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Are Central Banks Ready for AI to Rewrite the Rules of the Economy?
Posted
July 20, 2025
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July 20, 2025
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10:26Now PlayingHow will artificial intelligence reshape the global economy, central banking and financial forecasting? Larry Summers explains that AI could raise the neutral interest rate and productivity, while also introducing more uncertainty into economic modeling. Sascha Steffen of the Frankfurt School of Finance and Management adds that AI can dramatically improve forecasting accuracy and data frequency, but introduce new risks like systemic amplification, model bias and lack of transparency.
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