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AI will Replace Central Bankers, Study says
If number crunching, financial modelling and manipulation of the money is your thing, you might be in trouble.
Whenever we talk about "machines replacing humans" in the workplace, we tend to imagine a poor supermarket cashier losing her job. This has always struck me as odd. Jeff Booth argues in "The Price of Tomorrow" that every job done by a human is actually an inefficiency.
If computers can be used to do jobs more efficiently, shouldn't we start at the highly paid, expensive jobs that don't require any manual labour?
Well, turns out, we will!
I've long argued that Bitcoin will replace central banking because Bitcoin solves the same problem as central banking - but it also solves the problems caused by the rather silly system of political money that central banking delivered us.
But even if I'm wrong…even if we stick with this bizarre concept of a monetary policy decided by a counsel of elders who (supposedly) know how to "run" an economy. Even then, AI is going to disrupt their shit.
And not only theirs. All "high finance" jobs are suddenly in danger. If number crunching, models and the like is your thing, you might be in trouble. But don't take my word for it. Have a look at this recent study that tries to figure out who will be impacted the most by Large Language Models like GPT4. Turns out it’s finance people, insurance people and central bank people.
Now I'd like to point out: It's incredible that the authors of the study even include "monetary authorities - central banks" into their list. Many scientists tend to forget about them - especially economists. But of course, it makes sense. Central bank staff doesn't add any value to the economy nor society. If their jobs get done by a computer, human workers would get the chance to actually do something useful with their lives.
There is a caveat however: Just because computers could do their jobs, it doesn't mean they will anytime soon. In the private sector, things will be different; expect many highly paid finance posers to lose their jobs rather quickly. But at a central bank level, there is no market forcing them to adapt. Bureaucracies like this will change very slowly and protect their people from the elements as long as possible.
But again, there is Bitcoin - the other digital force replacing central banking. So, yeah, it is only a question of time. And if you read this, wondering which jobs might be safe, I have a list for you...
You see, there are options for Lagarde, Powell and Carstens - but of course, in the real world, even if AI takes away the jobs of central bankers, it will hit the little people first.
Anyway, this was fun.
Until next time, Niko
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