This chapter explores the inaccuracies of economic predictions and the negative consequences of doomsaying on firms and society. It advocates for rational optimism and a shift away from relying solely on macroeconomic models for forecasting due to the complexities of economic systems.
Economic crises can and do happen. But for every true crisis, there are many false alarms, says economist Philipp Carlsson-Szlezak. He explains how to live with the media's pervasive economic doomsaying, why we should stop treating financial forecasts like a precise science — and what we should embrace instead. After the talk, Modupe shares why she’s a “rational optimist” about economic narratives — and what "rational optimism" means to her.