AI and the death of macroeconomics as we knew it

It’s not inflation or recession that has blindsided traditional macroeconomists, but irrelevance. Artificial intelligence has not just transformed markets but made our dominant frameworks for understanding them obsolete.

For over a century, macroeconomics has relied on tools honed in the industrial age: GDP to measure growth, yield curves to signal recessions, and productivity metrics built around physical goods. But we now live in an economy increasingly defined by the immaterial: algorithms, platforms, synthetic data, and code.