
Algorithms vs. Chaos: Can Unexpected Shocks Be Predicted?
Algorithms and the Unpredictable Economy The debate over whether algorithms can anticipate disruptive shocks, financial crises,technological leaps, or geopolitical ruptures, has re-emerged. In recent years, economists and data scientists have begun to analyze chaos not as somethingfully predictable, but as something measurable through non-linear analytics. As the European Central Bank observed in its Economic Bulletin (2021): “Machine learning can complement traditional econometric techniques, particularlywhen modelling non linearities and structural breaks.” This insight reflects a new




