Business
Look closely and the RBA’s upbeat forecasts for the economy aren’t that wonderful – Sydney Morning Herald
Economists have an appalling forecasting record, but we are undeterred in asking for more predictions.
Particularly at times when were trying to recover from a recession recessions the economists rarely if ever saw coming Reserve Bank governors produce optimistic forecasts, or try to sound upbeat about a not-so-wonderful forecast, for the justifiable reason that what actually happens can, to some extent, be influenced by what enough people expect to happen. People tend to act on their expectations, as part of their illusion of control.
If ever there was proof that we live in an age of radical uncertainty…
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