Taking Radical Uncertainty Seriously in Economics

The video explores the concept of uncertainty in economics, emphasizing its distinction from measurable risk. It delves into Keynes' General Theory, highlighting the importance of radical uncertainty in decision-making processes. The discussion includes an analysis of Keynes' 1937 article, which underscores the significance of uncertainty in economic theory. The concept of ontological uncertainty is examined, illustrating its inherent nature in the universe. The video concludes by discussing the implications of uncertainty for future economic thinking.

What is the primary distinction between uncertainty and risk as discussed in the first section?

• Uncertainty and risk are the same in economic terms.

• Both uncertainty and risk are easily predictable.

• Risk is measurable and manageable, unlike uncertainty.

• Uncertainty is quantifiable, while risk is not.

Who was the influential figure that the speaker wrote their PhD thesis for?

• John Maynard Keynes

• Richard Cohn

• Adam Smith

• Milton Friedman

What key aspect does Keynes' 1937 article emphasize?

• The distribution of wealth in the future

• The importance of liquidity preference

• The stickiness of prices and wages

• The significance of radical uncertainty

What does the term 'ontological uncertainty' refer to in the context of the third section?

• The predictability of future events

• The inherent unpredictability of the universe

• The certainty of economic outcomes

• The reliability of scientific laws

According to the final section, what is a major challenge in decision-making?

• Predicting the exact outcomes of decisions

• Reversing the flow of time

• Being held accountable for uncertain future consequences

• Understanding the second law of thermodynamics