Blemish in Macroeconomics

Name
Professor
Course
Date
Blemish in Macroeconomics
Lanchester’s work addresses what has been happening in the macroeconomics sector over the past few years. Economists were terrified of what the implication of Brexit. Head of international financing agencies such as the IMF suggested that the impact of Brexit would either be mild or severe. According to the Bank of England, there would soon be an upward trajectory in unemployment and a reduction in the gross domestic product. Surprisingly what transpired in 2016 was Britain witnessing a paramount advancement in its economy. Pessimists have claimed that the effect Brexit is not averted but instead postponed. Doomsayers include John Lanchester and the likes of Andy Haldane, head economist of the Bank of England. Andy compares the prediction of the economy recessing to the famous false weather forecast in Britain made on a national broadcast. Where a woman had called in and warned of a hurricane, but meteorologists ignored her only for her allegation to come true (Lanchester).
Macroeconomics was designed for definite, real-world purpose, and to prevent adversity such as the repetition of the Great Depression. But it fails to attain this objective because of some profound conceptual mistakes. One of the faults made is the failure to cooperate with the banking system on the affairs of the economy. According to Haldane, there is a need for other disciplines to be incorporated into macroeconomics so that the economists might learn a thing or two.

By this profession having borrowed too little it has turned into a monoculture with allied peril, making it possible for people in the sector to be wrong simultaneously. It is terrifying that head economist of both World Bank and the Bank of England believes their trade faces calamity.
Works Cited
Lanchester, John. “The Major Blind Spots in Macroeconomics.” The New York Times – Breaking News, World News & Multimedia, 7 Feb. 2017, www.nytimes.com/2017/02/07/magazine/the-major-blind-spots-in-macroeconomics.html?ref=economy. Accessed 7 Sept. 2018.