The Optimism Bias
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It feels like one more throw of the dice for central bankers stuck in the Last Chance Saloon. Last week’s rate cuts from the European Central Bank and gilt purchases by the Bank of England were certainly better than nothing. We shouldn’t kid ourselves, however, that they’ll provide the answer to life, the universe and everything. Our economic and financial problems are too big to be fixed with a simple flick of the interest rate switch or an extra £50bn of quantitative easing.
Yet, until now, the puppet masters who pull our economies’ strings have persuaded themselves they know how to deliver us to the Promised Land. Central bankers have persistently provided forecasts for economic growth which, in hindsight, have proved to be far too optimistic.
The Optimism Bias
The Optimism Bias
The Optimism Bias
The Optimism Bias
The Optimism Bias
The Optimism Bias
The Optimism Bias
The Optimism Bias
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