LLMs Spot Fiscal Shocks

Researchers and practitioners are experimenting with large language models to detect or flag fiscal shocks (news, policy moves, budget surprises) by scanning text, filings, and signals faster than traditional indicators. If robust, these models could become inputs to central bank monitoring, market risk systems, and fiscal stress tests. — Deploying LLMs as early‑warning tools would shift who detects macro risk, changing market reactions, regulatory attention, and the political economy of crisis response.