Examining the forecasting errors made by the main bodies in the past decade, the tendency to overestimate the growth gap and to underestimate inflation is notable. Such errors encourage the maintenance of very accommodative monetary conditions even when the economy starts to grow again.
While textbook economics suggests that lump sum transfers from the winners of trade can ensure that all are better off, such transfers – or adequate training and educational measures – have not happened in sufficient scale to compensate everyone.