John Kay: Short-term weather forecasts are better than medium-term economic forecasts

Spotting a banking crisis is not like predicting the weather 
Short-term weather forecasts are better than medium-term economic forecasts 

The objective of monetisation has not been to put money in the hands of consumers and businesses but to put money in the vaults of banks.

Ever since the world’s financial system teetered on the abyss following the collapse of Lehman Brothers three years ago next month, critics from Queen Elizabeth II downwards have posed one uncomfortable yet highly pertinent question: are economists of any use at all?


John Kay, Financial Times

http://www.internetional.se/stabiliseringspolitik.htm#kayaug2013



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