Theoretical problems

It’s a wonder, really, that the Bank of England’s forecasts get any attention at all. The UK central bank failed to anticipate either high inflation or low growth. But then few experts have done any better. It’s particularly easy to trace the BoE’s mistakes from its quarterly inflation report. Once a year, it even includes a page looking back at its record. The August report, published on Wednesday, shows a big miss. What actually happened to growth since February 2007 was considered highly imp...