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The future is very difficult to predict lately. After Covid-19 supply chain disruptions, Russia's attack in Ukraine and inflation reaching heights not seen in many
The future is very difficult to predict lately. After Covid-19 supply chain disruptions, Russia's attack in Ukraine and inflation reaching heights not seen in many decades, financial analysts are struggling to estimate what is coming next. This shows in larger-than-expected confidence bands of predictions issued by central banks or institutions such as the IMF. It is also showing in much larger than usual updates on previously published statistics such as inflation, income growth or GDP growth. This might not be apparent from the forecasts published by OECD, IMF or the investment banks, as they, as usual, estimate future developments very close to what was historically normal. But there is an unusually high discord between individual forecasters - inflation is by some seen as entrenched at uncomfortably high levels, while others see deflation on horizon. Some economists forecast soft landing for both U.S. and European economies, while others expect fairly severe recession. Write a critical essay where you critically evaluate how this uncertainty in regards of the future state of the economy influences businesses, investors and markets
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