I don't think you can reasonably expect economics to forecast. But i wish people were more aware that forecasts of that kind are tools for thinking about what might happen, rather than actual predictions. We might do better if we even called them scenarios rather than forecasts. It as really interesting about the financial crisis. There were signals, flashing of strains, and it was the character of the attention that got paid to them d by whom that meant that nothing was done in advance to avert the crisis.
Mainstream economics, says author Diane Coyle, keeps treating people like cogs: self-interested, rational agents. But in the digital economy, we're less sophisticated consumer and more monster under the influece of social media. Listen as the economist and former UK Treasury advisor tells EconTalk host Russ Roberts how, for economics to remain relevant, it needs both more diverse methodologies and more engagement with the broader issues of the day.