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

You might find this interesting:

**Level 1 chaotic systems** are systems which are chaotic but can be measured without changing the results.

This is different from **Level 2 Chaotic Systems** which are changed as you measure them. For example, the cryptocurrency markets that we all deal with — if you perfectly predict the next few days of activity, then post those predictions in a post on your steem blog, the act of posting the prediction will change the end result.

[https://steemit.com/chaos/@heymattsokol/level-1-vs-level-2-chaotic-systems-steem-is-level-2](https://steemit.com/chaos/@heymattsokol/level-1-vs-level-2-chaotic-systems-steem-is-level-2)