Particularly when they attempt to account for "shock" events - the financial crisis (when forecasts undercooked the effects) or the vote to leave the European Union (when models over-looks the short term effects and fails to account for "dynamic" policy responses such as the Bank itself cutting interest rates to new record lows).
Particularly when they attempt to account for "shock" events - the financial crisis (when forecasts undercooked the effects) or the vote to leave the European Union (when models over-cooked the short term effects and failed to account for "dynamic" policy responses such as the Bank itself cutting interest rates to new record lows).