Economists do not set government policies, nor do they control corporate decisions. They also do not control business cycles, such as the housing bubble of the 2000s, farm prices, etc. They may advise, they may study and write, but don't make the rules.
Even the Federal Reserve Board is composed primarily of bankers, not economists. Read more here:
http://www.bing.com/search?q=predicting+recessions&qs=n&form=QBRE&pq=predicting+recessions&sc=1-21&sp=-1&sk=&cvid=593DD7CCC65F4B118719C4E481080021
Why do you think this country has been on recession over the years, irrespective of the number of great Economists in the country. Why didn't they prevent the recession in the first place?
I think the fear of failure in forecast was a contributing factor. The major problem could also be that they were so relaxed with their "all well" knowledge of the country's economy.
Please anyone with a better knowledge should help. I will really appreciate it.
3 answers
Thank you so much.
Another thing to keep in mind is that economists often disagree about their own subject. Milton Friedman, for example, had very different ideas than Paul Krugman or Ben Bernanke. And even then, Bernanke, as Federal Reserve Chairman, faced political realities that were at odds with some of the ideas he espoused as a theorist at Princeton.
1 answer