Regression toward the mean

that's what they

use but i guess um this is where i'll probably inter like introduce one of the chapters in your book uh chapter five when doing nothing is the smartest move uh mean regression if you could explain to us how mean regression works my question around this is will the reserve bank of new zealand end up effectively taking credit for controlling inflation when in reality the oil shock which is also squeezing households might actually force things or something else might actually force things to actually find a natural equilibrium again with inflation.

Mean regression is an interesting topic and catches that out more often than we believe.

It simply states if we do a task often enough, we behave on average, but sometimes we are at the low end or at the very high end.

So think about sports.