Economic policy making literally matters to all of us. Economics is supposed to provide the necessary knowledge which enables policy-makers to take effective economic policy decisions. This is why it is so important for all of us to understand how reliable this kind of knowledge is. What can we reasonably expect from economics and where are its limits? One particular scientific objective in the policy-context is to make correct predictions. And the following inquiry is about the limits of such macroeconomic predictions as well as about their sociopolitical consequences.
KeywordsRoot Mean Square Error Forecast Error Error Sequence Antecedent Condition Economic Forecast
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