Monday, June 20, 2011

Two Views on Probability of Double Dip Recession

link here to article

Brad DeLong reads Shiller's article in the WSJ on the housing market and why Shiller is worried about a double dip recession, despite the fact that forecasters disagree with his him. DeLong is worried too, but for a different reason. He believes that the historical correlations, that are built into the macroeconomic forecasting models do not reflect current reality, and that the models are probably wrong.

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