Economic Forecasting: Issues and Challenges

Economists have come under repeated criticism in recent years. In an era of refined economic theories supported by advanced models and tools, economists continue to face challenges in forecasting changes in the economy and forewarning crises reliably. The 2008 financial crisis, post-recession recovery and the economic impacts on the UK of the Brexit vote are three recent, high profile examples of misjudged forecasting. These events have shaken the confidence in modern economic theories and models.

Continue reading