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Why do economists get it so wrong? Peter Antonioni answers

by souhaib
September 30, 2020
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Why do economists get it so badly wrong? Reasons behind mistakes from failing to predict the financial crisis to misjudging the post-Brexit vote slump

By Rachel Rickard Straus for Thisismoney.co.uk

Published: 07:50 BST, 17 February 2017 | Updated: 08:11 BST, 17 February 2017

Economists have been left scratching their heads as the economic catastrophe many had predicted immediately following the Brexit vote has so far failed to materialise.

And few can forget the overwhelming failure among most economists to see the financial crisis coming.

Of course again and again they do get it right, and forecasting can prove invaluable for planning for the future.

But these two huge failings alone suggest that economics isn’t always up to scratch.

SCROLL DOWN FOR VIDEO 

Unexpected: At times economists’ predictions are way off the mark 

So why do economists get it so wrong at times, is economics up to the job – and if not, what alternatives have we got?

In this episode of the Big Money Questions Peter Antonioni, author of Economics for Dummies and Senior Teaching Fellow at the UCL School of Management, has the answers. 

 

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