Why economists cannot forecast recessions

A new article by Alasdair Macleod quoted my research: “Loungani was recently interviewed for a BBC programme, updating his original paper. In that interview, he claimed that over three decades, of the 150 recessions recorded only two had been forecast, implying that since the turn of the century no recessions had been forecast at all.ii The failure rate has increased to 100%, not decreased, as might be expected from economic models that are updated in the light of experience.”

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Posted by at 6:43 PM

Labels: Economic Forecast

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