How Did Wynne Godley Become The Most Accurate Forecaster of the British Economy?
Executive Summary
- Forecast accuracy is very important in determining the correctness of economic models.
- However, in economics, whether the economist conforms with private banking interests is considered far more important than forecast accuracy.
Introduction
The following quote covers Godley.
“Professor Wynne Godley, retired head of Economics at Cambridge University and now over 80 years old, was widely renowned as the most successful forecaster of the British economy for multiple decades. And he did it all with his “sector analysis,” which had at its core the fact that the government deficit equals the savings of financial assets of the other sectors combined. However, even with the success of his forecasting, the iron-clad support from the pure accounting facts, and the weight of his office (all of which continues to this day), he has yet to convince the mainstream of the validity of his teachings.”
Source: Mosler Economics
How the Economist Profession Ignores Predictive Economists
Godley uses assumptions that contradict the mainstream and private banking-controlled economics ideas. Therefore, Godley’s accuracy is not only considered irrelevant, but mainstream economists will be careful not to mention his work. Mentioning Godley’s work places that economists in the crosshairs as a “crank” or someone who cannot be trusted.