Practical economics is exclusively about controlling perception.
The Fed, for example, may have modelling that indicates we have a downturn coming in 6 months. Those models aren't predictive though, and the Fed announces their economic outlook and what they may do with rates in the future they are only attempting to modify public perception and nudge behavior to make the future they actually want happen; it has nothing to do with predicting where the economy will be.
The Fed, for example, may have modelling that indicates we have a downturn coming in 6 months. Those models aren't predictive though, and the Fed announces their economic outlook and what they may do with rates in the future they are only attempting to modify public perception and nudge behavior to make the future they actually want happen; it has nothing to do with predicting where the economy will be.