Back in June, I watched the livestream of the Chapman Economic Forecast with Dr. Jim Doti (who was president when I was a student at Chapman). Typically, this is a valuable informative event, and the team has an excellent record of performance. They have often outdone other forecasters in predicting the future.
That is why I feel a little bad for making this post in the summer and tweeting out Doti’s prediction that we would have a recession by now.
To be fair to Doti, there has been a lot of uproar over this issue. Lots of people thought the economy would be bad. And lots of people feel like the economy is bad (the “vibecession”) even though it is objectively not. Many tweets have gone by about it.
Doti opened by saying his prediction had turned out to be wrong. He had an explanation for it (pictured below). You can watch it free here (recorded on Dec 14).
Doti said that he had expected a large fiscal stimulus in the form of deficit spending, however he had not expected the deficit to be so large. Debt-financed spending propped up an economy that was otherwise poised to contract. At least, that is a plausible story.
Looking forward, Doti does not predict a recession next year, but he does predict weak growth and possibly one quarter of GPD decline (not two).
The next part of talk was about the long-term consequences of deficit spending. Nothing is free. TANSTAAFL
In addition to vibecession, anyone following economics in 2023 needs to know what a “soft landing” is.
Economist Writing Every Day 
Good points, most people I read focus a lot on monetary policy but tend to forget about fiscal.
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