Sheila Dow: The Economics of Uncertainty
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Welcome to our video series called "New Economic Thinking." The series will feature dozens of conversations with leading economists on the most important issues facing economics and the global economy today. This episode features Sheila Dow speaking about the economics of uncertainty. Studies in psychology, neuroscience, biology, and many of the social sciences have long illustrated that human beings react very different from what economics textbooks tell you to expect when they are operating under conditions of radical uncertainty. As Dow notes in this interview, individuals cannot know exactly how ignorant they are, as the future is yet to be created. No standard of complete knowledge or complete ignorance exists to provide a reference against which to measure our actual ignorance. What implication does that have for the study and practice of economics? Watch the interview to find out.
Comments
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Interesting discussion at about the 5:00 minute mark on the complex institutional regulatory structure of central banking and the state, and how greater deregulation led to the mess we're in today. I still have not found a good reason in economics why giving more freedom to the investment banking arms of the banks could lead to the build up of stresses, when the exact opposite should be true if you believed in the need for efficient market-clearing forces, at least in the long-run?
13m 37sLenght
20Rating