Financial crisis exposes flaws in UK economic forecasting models.
The study looked at how well a specific economic forecasting model performed before, during, and after the financial crisis. They found that the model's predictions got better the further into the future they looked, but all forecasts got worse after the crisis. The model struggled most with predicting GDP. One reason for this could be that the model doesn't consider as much up-to-date information as human forecasters do. When the model was adjusted to include more current data, it performed better. The study shows that adding different types of information to the model can improve its accuracy.