Wednesday, February 12, 2014

Jason Karaian — The Bank of England has confirmed that economic forecasting is basically impossible

The bank may have botched its initial attempt at forward guidance, encouraging markets and the media to fixate on form over substance, but its new policy—however vague—sensibly acknowledges the fallibility of economic forecasting. It is not surprising that the governor has come under fire for the bank’s poor forecasting record, but slavishly setting rates according to an arbitrary, inflexible formula would be an even bigger mistake.
Quartz
The Bank of England has confirmed that economic forecasting is basically impossible
Jason Karaian

1 comment:

Roger Erickson said...

Hopefully, that statement included their resignation letters?