Embracing uncertainty

Nobel Laureate Professor Lars Hansen proposes how policies can be made to cater for uncertainty.

by Ben Powell 27 Feb 2018

Uncertainty must be embraced in many areas of life, not least financial markets and political policy. This requires people to confront the fear of being overwhelmed. Accepting uncertainty is a challenge that can be met with education, which ideally should teach people how to be flexible in their thinking. It can be addressed politically by designing policies that are not needlessly complex, but that incorporate the reality of indeterminate outcomes, which are then communicated sensibly to the public. That's the message from Nobel Prize winning Economist Professor Lars Hansen.

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