60% chance of economic downpour?

Why can’t economists forecast better? The short answer is they don’t try.

The four-day weather forecasts of today are as good as one-day forecasts 30 years ago. Economic forecasts have been consistently lousy throughout the period with no sign of improvement. And yet there's evidence they could improve, though probably not by as much. How could they do that? By taking a leaf out of the weather forecasters' book.

We discuss Ben Bernanke's review of the Bank of England's forecasting and ask why Philip Tetlock's work on superforecasting has received so little attention. The answer is "no reason", it's just that he's not an economist. And the profession of economics puts its store in the cleverness and technical prowess of its forecasters, rather than in their ability to consistently outperform other forecasters.

If you'd like to access the video, it's here.

00:00 Trailer

00:58 Start

05:15 Introduction to Forecasting

06:27 Philip Tetlock and His Legacy

07:58 The 2008 Economic Downturn: A Case Study

11:38 The Essence of Super Forecasting

12:38 Psychology in Forecasting: Kahneman's Perspective

17:17 The Weather Analogy: Forecasting's Gold Standard

20:39 The Future of Economic Forecasting

23:09 Concluding Thoughts and Reflections