London Business School model predicts UK economic trends with unprecedented accuracy.
The London Business School created a computerized model of the UK economy in 1966 to predict future economic trends. The model focuses on how people spend money, save, and invest, and how these decisions affect the economy. It considers both demand and supply factors, such as wages, employment, and asset prices. The model shows that monetary conditions, like interest rates and wealth, have a big impact on the economy. It also suggests that asset prices change quickly based on new information, while goods prices change more slowly. Overall, the model helps understand how different factors interact to shape the UK economy.