Economics Quote by Kenneth Arrow
“The MD is well aware that the forecasts are no good but he needs them for planning purposes ...”
About This Quote
Source Speech: Economic Forecasting Conference, 1972
Policymakers rely on flawed forecasts for planning, acknowledging their inaccuracy but using them anyway.
In simple terms: Forecasts are flawed yet used.
Key Takeaway
Use forecasts cautiously.
Themes
policy
uncertainty
decision‑making
Mood
analytical
critical
Type
pragmatic
inspirational
When to use this quote
- government budgeting
- business strategy
- climate modeling
- health planning
Key Concepts
economics
risk management
Questions to Reflect On
- How can decisions improve forecast reliability?
- What alternatives exist to forecast‑driven planning?
A Different Perspective
Overreliance can cause costly errors.
