The world is not only changing, it is being turned upside down. We are moving toward what economists once thought was impossible: perfect information. And no, this is not utopia. It’s a symbol. Drivers? Artificial Intelligence – the tireless mind – and Blockchain – the incorruptible record keeper. Together they burn away the fog that has kept markets twisted, policymakers guessing, and citizens in the dark since Adam Smith wore a wig.
AI is already consuming oceans of data — your trades, your tweets, your coffee order — and finding patterns before your morning espresso gets cold. Blockchain seals this truth forever. No reviews, no excuses, no “sorry, we lost records”. Transparency becomes the default, not a public relations ploy.
Goodbye, insider tips and shadow pricing. Hello, trustless trust. When the code verifies everything, no one can falsify the numbers. Self-audit of supply chains Loans are approved based on hard data, not gut feelings. Even governments, the last masters of mystery, will find their books glowing under the fluorescent light of the blockchain ledger.
Economists, get ready. Our sacred models? They are melting.
Microeconomics First: The wonderful supply and demand curves we worship will take hold and turn into instant equilibrium. No more George Akerlof’s “Lemons,” no more hidden flaws. With complete transparency, markets stop guessing and start knowing. The Invisible Hand has just gotten an upgrade, and it’s an algorithm.
The macro gets weirder. Keynesian levers, fiscal stimulus, and cash games – all designed for a world of uncertainty – are beginning to look strange. When AI predicts a recession through real-time jobs data, there is no need to “wait for next quarter’s numbers.” Economic policy becomes predictive rather than reactive. GDP itself? Outdated. We will track flows of token value – energy, labor and ideas – in real time. Imagine a live dashboard of the global economy, updated every second.
Critical theory? Fasten your seat belt. Central banks are waving the interest rate wand while guessing inflation from surveys will look like medieval alchemists. Smart contracts will automatically adjust prices, cryptocurrencies and central bank digital currencies will dominate liquidity, and fiat currencies will fade into nostalgia. New money law? Perfect speed = perfect stability.
This is not science fiction. It’s already happening in decentralized finance, prediction markets, and token economies. A shock wave is coming to the mainstream economy next. Textbooks will need to be rewritten:
• Micro: From fog to programming.
• Macro: from models to machines.
• Cash: From chairs to chains.
But don’t cheer too early. Perfect information also means perfect exposure. In a world where everything is visible, the human mind becomes a scarce resource. Privacy is transformed from a right to a luxury. Behavioral economics will not disappear, but will evolve into the study of how rational minds remain transparent 24/7.
Written by Professor Ilan Allon, Professor of Economics and Business at Ariel University (Israel) and Agder University (Norway)
