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Economy Banking Featured Finance

Lumpy forecasts: Rational inaction in professional forecasting

Forecasts from professionals (economists, analysts, brokers, academics) are a key input into economic decision-making. This column highlights that professional forecasts are ‘lumpy’, often remaining unchanged for several periods, before shifting in large, infrequent jumps. It argues that this reflects ‘rational inaction’, as frequent adjustments or constant swings could undermine credibility. It suggests a natural distinction […]

Finance Business Featured News World

Miran, we’re not in Triffin land anymore

Stephen Miran, Chair of the US Council of Economic Advisers, claims that we live in ‘the world of Triffin’, meaning that foreign official accumulation of dollars is driving US current account deficits. This column argues that over the past ten years US current account deficits have persisted while foreign official inflows into US investments have […]