If a prediction of a recession causes the market to crash, can it be said that the prediction itself is part of the cause of the recession? Like a self-fulfilling prophecy?

Question

If a prediction of a recession causes the market to crash, can it be said that the prediction itself is part of the cause of the recession? Like a self-fulfilling prophecy?

In: Economics

Answer 1

While it may be, you have to consider the possibility that recessions are cyclical and that the predictions are making a vague prediction about an event that’s not necessarily related to the evidence the prediction stems from.

As an analogy, if I say it will rain because I washed my car, then it rains within the next 2 weeks, most would agree that my prediction while accurate on some level was vague enough it merely predicted an already probable event simply by accident.