Monday, October 24, 2022

Can a Recession Be Foretold?

Recessions are costly events--hence there is great interest in predicting when they will happen. There are a variety of tools and methodologies to help predict recessions. Forecasting efforts range from large-scale general equilibrium econometric models to new machine learning methods. In addition, The Conference Board Leading Economic Index® (LEI) is used as a barometer of future economic conditions and a forecasting tool. 

Currently, the LEI is signalling an imminent recession in the US economy.

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