These models won't be wrong for all of them. It is just that central banks, Fed, Dr. Greenspac are wrong; then, they blamed the models, don't blame themself. These crooked central bankers are evils and they are still making trouble for further crisis. Fed is still there printing money, he won't let US to be bankrupted now, it was the same way Dr. Greenspac did years ago. This is all problems Fed face at momentum. To make USA bankrupted or to crook all finance systems are only two choices. Never any model can deal with central bank irregulated behaviour or crooked mode.
Macroeconomic model comparisons and forecast competitions
Where were economists when the global recession hit? Or rather, where were their forecasts in the years before? This column argues that clearly some of the models were at fault. To correct this, it proposes a ‘comparative approach’ to macroeconomic analysis where models compete for the right to be taken seriously. The failure of economists to predict the Great Recession of 2008–09 has rightly come under attack. The areas receiving most criticism have been economic forecasting and macroeconomic modelling. Distinguished economists – among them Nobel Prize winner Paul Krugman – have blamed developments in ... (full story)