Brian Romanchuk — The Limitations Of Economic Theory In The Current Environment

Economic theory provides a framework to think about economic events, but I have limited hope that theoretical models can provide highly accurate forecasts for the near term. I believe that most academic economists would take such a view as being unremarkable, but this is not the case in market economic analysis. The financial media wants economists to have strongly held point forecasts about what will happen to the economy within the next few months, and once again, demand creates its own supply. Using a somewhat novel economic theory helps economists with their branding, which leads some to attempt to stretch the predictive power of their preferred theories to the limits.

Bond Economics
The Limitations Of Economic Theory In The Current Environment
Brian Romanchuk