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Now more than ever, economists, policy makers, and businessmen need to be able to form forecasts of key economic aggregates--or at least be able to critically appraise forecasts of official institutions and private think tanks. Economic Forecasting and Policy (Second Edition) is the perfect book for the task. Written lucidly and intelligently by three well-known economists from the French Treasury, the OECD, and the BIS (one of the few institutions to have "called" the 2008-09 global financial crisis), this book provides both underlying theory and much practical advice. After an overview of business cycle analysis, Carnot, Koen and Tissot delve into the main building blocks of aggregate time series: on the "real" side, consumption, investment, external balance, employment, and wages and prices; on the financial side, monetary policy and its transmission, macro-financial linkages, and asset prices (bonds, stocks, exchange rates). These are truly superb, covering a lot of technical material in an accessible way. Of particular relevance to recent events in the United States, Europe, and Japan, is the chapter on public finances; this is must-reading for anyone trying to make sense of the fiscal policy debates in advanced economies today. After going through the various building blocks, the book gets into forecast risks and accuracy, which is intimately linked to the use to which the forecast will be put (discussed in the final chapter). Here the authors' experience in both making and (more importantly) using forecasts is evident, and the discussion is balanced and intelligent. Three useful (though more technical) annexes describe the data used for major macroeconomic forecasts, time series econometric methods, and macro models. Overall, a thoroughly enjoyable book by three authors who clearly know what they are writing about. Highly recommended for students, policy makers, and practioners alike. I will recommend it to my colleagues and likely assign it to my MBA students.