Economics
BOE’s Haldane Says ‘Fair Cop’ to Getting Brexit Forecasts Wrong
- Bank’s chief economist concedes his profession is in crisis
- Likens poor economic forecasting to record of weathermen
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Bank of England Chief Economist Andy Haldane has put his hand up to say his profession has a lot of work to do if it is to recover from its failed predictions over the global financial crisis and Brexit.
Forecasting methods worked before the financial crisis because the global economy was experiencing less volatility and “people were behaving broadly rationally,” the outspoken policy maker told an event in London on Thursday. “The problem came of course when the world was tipped upside down and those same frameworks were ill-equipped to make sense of behaviors that were deeply irrational.”