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2009-07-22

Rupert Murdoch on economic forecast

This my comments on (参加就奖)中国是否即将面临高通胀?【辩论帖】, 22/07/2009, http://www.pinggu.org/bbs/thread-483033-1-1.html. The context is:

在2009年7月至2010年6月,这1年期间我国CPI会达到多少高度?是否会出现恶性通胀?(10%及以上)因此对各方面的影响?(小企业、房价、官方利率等)希望大家以事实和数据为依据,理性探讨辩论通胀的可能性。
正方立场:在1年之内,我国的CPI预计会达到6%以上。反方立场:在1年之内,我国的CPI最高不会超过6%(6%是极限)。

Is it scientific to say one way or another, or to support or against the argument?

News Corporation Chairman, Mr Rupert Murdoch said not long ago: "Economists just make the weatherman looks better."

Inflation, as economic growth, is endogenous and affected by so many variables, including government policies and responses by other market agents. They are difficult to forecast, because they can change as other things including policies change.

To say one way or another is not meaningful and is not different to betting. It does not make any sense, although so many people are interested in doing it. There is no science in it.

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