Article: Predicting Indiana's economy: why our forecast is fairly optimistic.(INDIANA INDICATORS)

PREDICTING THE SIZE and scope of economic activity for the nation, state and region is one of the more important roles played by university economists. I've done my share of forecasting at the federal, state and municipal levels, and like most other economists have been mostly on target with my projections. But 2008 is the kind of year that really tests economic forecasting.

Our forecast is fairly optimistic, and we predict job growth of about 1.6 percent, and wage growth of 3.8 percent for 2008. Other forecasters in the state, many with considerable experience in Indiana, have lower projections. All of the forecasts are worthy of thoughtful consideration and ...

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