ABSTRACT
Drawing on historical and sociological research, this chapter traces the history and current state of economic forecasting. The first part investigates the fundamental change in methods and functions of forecasting in the twentieth century which transformed economic forecasting from an instrument of representation into a tool of coordination. Subsequently, the chapter analyzes current practices of economic forecasting, arguing that “foretalk” among economists as well as economic and political decision-makers—i.e. the interactive exchange and coordination of views on and expectations of future economic developments—have now come center-stage. Finally, the chapter explores the use of forecasts and their publication by central banks, illuminating forecasting’s transformation into a crucial policy tool to manage and coordinate economic expectations.
