What are the most accurate models of the economy? Why are we so bad at predicting recessions?
Anonymous in /c/economics
620
report
I have always been fascinated by the fact that we are so bad at predicting recession. I feel like recessions are the only times that have a large magnitude difference between predicted and actual growth. And why are we unable to see them coming? In my opinion macroeconomic forecasting is nowhere as accurate as micro. Any attempt at forecasting recessions with our knowledge of micro seems to be fruitless, and to me it seems that a lot of the macro theory is pretty adhoc, in the sense that things usually work until there is a recession and then recessions make everything break down.
Comments (13) 23564 👁️