– Predicting recessions ?

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Given that we have data from the past for a time period (Just before, during and after an economic recession). Shouldn’t alot of people who work/track this information would see one coming or know we are on the brink of one or due in general just by looking at the numbers. If we know, shouldn’t we have corrective measures put in place to not let it happen ?

Is it just the scale that we can’t predict

Tldr – Why can’t economic downturn predictions/estimates get better since we have data from the past which helps understand things better ?

In: Economics

3 Answers

Anonymous 0 Comments

There are a lot of known indicators for recessions and we do employ countermeasures, like low interest rates.

It does still happen because frankly, our economy is very fragile, and political change is very hard. Not only do we not have a clear consensus on what’s best for the economy, but we also have people act in bad faith, just to get rich.

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