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Claudia Sahm's avatar

I worked on the Federal Reserve's staff macro forecast for a decade, starting in July 2008. I have learned how to be a vey good forecaster. I am. I affirm many of the points you made. Let me suggest some baby steps into the craft:

1) start with your 'most likely' forecast, that is, the 50% or the median forecast. That's easier than thinking through the entire distribution. state the conditions on your forecast. good forecasts are ALWAYS conditional. tell the 'story.' go beyond the outcomes, tell us what gets us there.

2) when you are ready to move off the most likely, think through some 'upside' and 'downside' risks. then tell us are the risks tilted to the downside or the upside.

3) a100% agree, re-elevate your forecast (most likely, risks, conditions) regularly. then UPDATE YOUR FORECAST. key is paying attention to ALL the data available. watch for blind spots.

4) Superforecasters are often'non experts.' why? one reason is that experts tend to have blind spots. they want so badly for their models to be right that they miss signs they are wrong. Fed staff grappled with that after missing the warning signs of the housing bubble. it's hard.

5) talk with non-experts, go out in the world. my walks have taught me and conversations with non-economists since Covid arrived have taught me so much. actively seek it out.

6) finally, be humble, especially, when your forecast proves right. after a really big hit, a senior officer came by my office and told me, "do not gloat in our next meeting. it could have been luck." and he said with a smile, "we all know you nailed it. you don't have to say a word."

I was fortunate and learned from the very best. no one has a crystal ball, but some of them give damn good advice.

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Doug Orleans's avatar

Scott Alexander has been doing this since 2014 I think? See if you can outscore him!

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