LETTER: Speculative intuition
Forecast for growth is likely to be either accurate, somewhat accurate or madly inaccurate
Lukanyo Mnyanda is right when he writes that “given the state of the economy and virtually no consumer demand” he sees no reason rates weren’t cut last week. Apart, that is, from the notion that not doing so would influence Moody’s downgrade decision (“Why ratings agencies matter and interest rates won’t be cut soon (https://www.businesslive.co.za/bd/opinion/columnists/2019-11-24-lukanyo-mnyanda-why-ratings-agencies-matter-and-interest-rates-wont-be-cut-soon/)”, November 25).
So now it appears that the science of economics has been jettisoned in favour of speculative intuition, which is hardly surprising considering the abject failure of computer models and the arcane algebraic equations that supposedly produce outcomes mathematically correct to two decimal places...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.