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Rotary Speaker Discusses Economic Forecasts

By Fox 40 Staff.
Gas prices and real estate prices are things many of us take into consideration when planning our budgets. So how can we predict the costs of these items as the economy changes? One expert says you can't.

Retired BU professor Edward Kokkelenburg says people should approach predictions about the economy skeptically. This is because "sea changes" or sporadic events can change outcomes.

For example, one could use data to predict how gas prices or real estate will look in the next year, but an outbreak of war could dramatically effect this.

"A fire in your house we hope is a very low probably event but you can plan for that.but whether there is war in the middle east, you and i can't do a hell of a lot about that..there's not much we can do in planning to accommodate it, so we should just get on with our lives," says

Kokkelenburg also spoke on the possible raise of interest rates.
He predicts that the economy will not be affected much if rates go up a quarter of a point, as many experts expect.