
Do We Still Need Central Banks in the Age of AI? — Why Should a Small Clique Still Decide the Global Market?
At the Jackson Hole Economic Policy Symposium in August 2026, Princeton University economist Markus Brunnermeier proposed a future that would make central banks uneasy: AI agents in financial markets may understand central banks faster and more deeply than humans do. These agents can simultaneously analyze macro data, policy documents, historical decisions, officials’ speeches, and market reactions, inferring the policy function of the central bank from all of it; human central banks, by contrast, may not even be able to understand the market behavior formed collectively by countless AI agents. Brunnermeier called this situation “asymmetric understanding,” and on that basis imagined that central banks might in the future have to retreat…
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