Pre-2008 Optimism: A Cautionary Tale
Household leverage rose, underwriting standards deteriorated, and housing price-to-income ratios broke historical bounds. Yet many GDP forecasts stayed benign. Discuss which indicators you think deserved more weight, and subscribe to our series on leading vulnerability metrics.
Pre-2008 Optimism: A Cautionary Tale
Linear frameworks downplayed nonlinear dynamics like fire sales and credit spirals. DSGE simplifications masked balance-sheet transmission. How would you have stress-tested those models? Share your method and follow our updates on structural versus reduced-form performance.
Pre-2008 Optimism: A Cautionary Tale
Today, forecasts more often incorporate financial conditions indices, borrower leverage, and tail risk scenarios. Tell us which additions improved your accuracy most, and help refine our checklist for early-warning inputs that genuinely move growth predictions.